# accounting for motor expenses as a sole trader



## olivia (12 Feb 2009)

I am a recently registered sole trader and use my private car for travelling (approx 25% of my total milage for 2009, I anticiapte).  How do I account for this in my return to revenue?  What documentation/proof must I be able to produce if required to support the claim?  i know I can only claim the actual cost incurred and not civil service rates.


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## Domo (12 Feb 2009)

You need to prepare a full set of accounts in order to complete your tax return.

You should keep details of all of your car expenses, including Repairs, petrol or diesel, road tax, NCT, etc.  you should then apportion these costs based on your actual mileage.

You therefore need to keep a log of your mileage for inspection by the Revenue if requested.

You can also claim Capital Allowances on the value of your car (again apportioned).


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## Graham_07 (12 Feb 2009)

Domo said:


> You can also claim Capital Allowances on the value of your car (again apportioned).


 
And bear in mind that there have been major changes to computation of Capital Allowances in relation to vehicles purchased since 01/07/ 2008 being now categorised by CO2 emissions. ( Section 380L TCA 1997 )


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## Misjudged (11 Mar 2009)

Has anyone out there just used Civil Service mileage rates and if so how did you get on if audited?


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## Domo (12 Mar 2009)

Only employees can use the Civil Service mileage rates.

Self-employed must claim the relevant proportion of car costs.


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## mik_da_man (13 Mar 2009)

I'm pretty sure you can claim milage rates once they don't exceed Civil Service milage rates .


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## Graham_07 (13 Mar 2009)

mik_da_man said:


> I'm pretty sure you can claim milage rates once they don't exceed Civil Service milage rates .


 
A Sole Trader cannot claim CS rates. They must claim actual expenses incurred. If they charge out mileage as part of fees using CS rates then those rates become part of income against which the sole-trader may claim actual costs.


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## Avo (7 May 2009)

If you are a proprietary director of a company (and paying PAYE), can you claim CS rates from the company?


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## baldyman27 (7 May 2009)

Avo said:


> If you are a proprietary director of a company (and paying PAYE), can you claim CS rates from the company?


 
I am and do, with my accountants bleessing.


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## Domo (8 May 2009)

For your info - the Civil Service rates recently dropped.
Make sure you are paying at or below these revised amounts.


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## Graham_07 (8 May 2009)

Avo said:


> If you are a proprietary director of a company (and paying PAYE), can you claim CS rates from the company?


 
Yes.

As Domo said, watch the new rates, available from www.revenue.ie


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## Tentman (8 May 2009)

Graham_07 said:


> Yes.
> 
> As Domo said, watch the new rates, available from www.revenue.ie


 

Or www.finance.gov.ie


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