QBSE UK. How do I make last year's vehicle Capital allowance and actual costs when I've already logged simplified miles?

GH123 · ‎January 31, 2020

Hello, I have a work van and have logged all my mileage on Quickbooks self employed United Kingdom either automatically or manually input. Every journey is there.

I have realised that the fuel costs do not add up to much as I started in October 2018, half way through the business year.

I also bought two vans. One I lost money on due to faults and got rid of, at a loss, and one which was more expensive but I kept.

If I use the simplified method then my vehicle deductions are about £3500 using the 45p per mile method. If I change to Capital allowances and actual fuel and maintenance costs then it's more like £8000 for the first year (which was only 6 months self employed).

If I want to make 2018/19 vehicles based on actual costs and not wiping mileage/journey data from Quickbooks, can I change each 'business' journey to 'personal', this would then not generate 45p per mile etc. Once the figure is down to zero, could I then add my van invoices, fuel receipts, tyres invoices, repairs etc. as Capital allowances and vehicle costs? Then deduct what money I received when I sold the faulty van from this figure?

This way, I still keep the records of journeys incase anyone ever needs it but get the benefit of claiming the larger actual costs.

Then next year 2019/20 I will go to simplified vehicle expenses as the initial outlay for the Vans was in the 2018/19 year.

Thanks for any help.

ChristieAnn · ‎January 31, 2020

Hi there, GH123.

QuickBooks Self-Employed uses the simplified expense method (with flat rates) to calculate the allowable business expense for your car, van, or motorcycle. The rate is based on the mileage you drive:

Cars and goods vehicles: 0 - 10,000 miles - 45p
Cars and goods vehicles: After 10,000 miles - 25p
Motorcycles: 24p

Using the simplified method, you're unable to claim vehicle insurance, repairs, and servicing, or fuel costs, but you can claim all other travel expenses in addition to your simplified expense amount.

If you used actual expenses or capital allowances for your vehicle in the past, I recommend consulting an accountant for help in calculating the allowable expense with this method.

If you want to make 2018/19 vehicles based on actual costs or actual expenses, whatever you count as an expense must be related to the business miles driven, not personal. If you use your car for both personal and business use, categorise these costs as Business—no need to split with Personal. Your tax pro will calculate the business/personal ratio in your tax return based on the total expense amount.

For additional information what is the differences between the flat rate mileage deduction and actual expenses or capital allowances: Simplified Expenses mileage method (with flat rates) versus Actual costs for vehicles.

Please let me know if you have other questions related with QuickBooks. I'm always here to help.

View solution in original post

ChristieAnn · ‎January 31, 2020

Hi there, GH123.

QuickBooks Self-Employed uses the simplified expense method (with flat rates) to calculate the allowable business expense for your car, van, or motorcycle. The rate is based on the mileage you drive:

Cars and goods vehicles: 0 - 10,000 miles - 45p
Cars and goods vehicles: After 10,000 miles - 25p
Motorcycles: 24p

Using the simplified method, you're unable to claim vehicle insurance, repairs, and servicing, or fuel costs, but you can claim all other travel expenses in addition to your simplified expense amount.

If you used actual expenses or capital allowances for your vehicle in the past, I recommend consulting an accountant for help in calculating the allowable expense with this method.

If you want to make 2018/19 vehicles based on actual costs or actual expenses, whatever you count as an expense must be related to the business miles driven, not personal. If you use your car for both personal and business use, categorise these costs as Business—no need to split with Personal. Your tax pro will calculate the business/personal ratio in your tax return based on the total expense amount.

For additional information what is the differences between the flat rate mileage deduction and actual expenses or capital allowances: Simplified Expenses mileage method (with flat rates) versus Actual costs for vehicles.

Please let me know if you have other questions related with QuickBooks. I'm always here to help.

Topics

Training

Community

Resources

QBSE UK. How do I make last year's vehicle Capital allowance and actual costs when I've already logged simplified miles?

QBSE UK. How do I make last year's vehicle Capital allowance and actual costs when I've already logged simplified miles?

QBSE UK. How do I make last year's vehicle Capital allowance and actual costs when I've already logged simplified miles?

Need to get in touch?