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19th, December 2010, 01:21 PM #1
Tax return - car expenses
I need to file a tax return soon and I have some questions:
1. I regard all the money received from the clients as taxable profit, including mileage cost which is normally much below 40p/mile. Can I still use a standard 40p/mile rate (for the first 10,000 miles) for calculating the figure to be put in a tax return as "allowable expenses", or does it have to be the actual mileage I was paid?
2. I bought a car BEFORE I started my businees as a locum. Can I include the cost of the car (or rather a part of it) as "capital allowance"?
3. Can I claim the cost of insurance and repairs as "allowable expenses"? I am aware that it can only be a part of the costs attributable to the private use of the car which I calculate as:
(total mileage - mileage as a locum)/total mileage * 100% = % of use of the car for private purposes
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