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Posted Fri, 24 Mar 2023 01:03:44 GMT by manry73
Hi, I am a sole trader self-employed. I would like to buy a Vans to use only for my business. I would pay the van 50% cash from my business and 50% from bank loan with 60 months instalments (to repay from my business). What is the correct method of accountancy in order to claim the full cost of the vans during the next 60 months and the other cost connected to the van such a mot, service, repair but not mileages. Thank you very much
Posted Tue, 28 Mar 2023 10:11:23 GMT by HMRC Admin 17

Buying vehicles. 

If you use traditional accounting and buy a vehicle for your business, you can claim this as a capital allowance. 

If you use cash basis accounting and buy a car for your business, claim this as a capital allowance as long as you’re not using simplified expenses. 

For all other types of vehicle, claim them as allowable expenses. 

See link:

Expenses if you're self-employed   . 

Thank you.
Posted Thu, 30 Mar 2023 12:03:25 GMT by manry73
Hi, Thank you for your reply. If I buy a van to use only for my business, Is it possible for me to keep cash basis accountancy (not simplify) but not treat the vans as capital allowance. Instead, claiming the total cost of the van in the tax period olus all the running cost and maintenance cost such as Fuel, Mot, tax disc, service ect.? thank you M
Posted Thu, 06 Apr 2023 12:09:35 GMT by HMRC Admin 32

As you are using the cash basis, you cannot claim capital allowances if you are using simplified expenses for claiming against your car.

See guidance here.

Cash basis

Thank you.

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