Claim personal car use as sole trader

[Jordan Belfort]

Just wondering how I claim tax deductions for personal car use as a sole trader ? I don't think I can claim depreciation but can I claim some ware an tear ?
Could I claim part of the 12.5% wear and tear and prorate that by the ratio of business miles/total miles the car does in a year?

The car is an EV, how would I account for electricity use as it's charged at home so there's no diesel receipts ?

 

[T McGibney]

It's impossible to answer your question without having at least some idea of what you do and your general circumstances.

 

[Jordan Belfort]

It's impossible to answer your question without having at least some idea of what you do and your general circumstances.

I've recently turned a hobby, tour guiding, into more of a formal paid role. I would have to drive to location of tours, often over 100kms, to do the work and return home same day. The travel is totally work related and could make up 5000km of my total car travel of 20000km a year.

 

[ClubMan]

Sounds like commuting to/from your place of work?
I don't think that you can claim relief on commuting expenses.

Business journeys

This page describes what qualifies for business travel

www.revenue.ie

Travel to and from work is your employee's own private travel. It is not a business journey.

What is your normal place of work?

Normal place of work

This page details what qualifies as your normal place of work

www.revenue.ie

Don't you have an accountant who can advise you?

 

[Jordan Belfort]

Sounds like commuting to/from your place of work?
I don't think that you can claim relief on commuting expenses.

Business journeys

This page describes what qualifies for business travel

www.revenue.ie

Don't you have an accountant who can advise you?

I haven's got an accountant yet anyway. Don't think it's a commute as the area I work can be different every time....Mayo, Galway, Tipperary, Kerry etc..

 

[T McGibney]

I haven's got an accountant yet anyway. Don't think it's a commute as the area I work can be different every time....Mayo, Galway, Tipperary, Kerry etc..

It kind of is commuting. It's a difficult area to advise upon as its all very much a grey area and hinges upon the level of work that is done at your base.

 

[Jordan Belfort]

It kind of is commuting. It's a difficult area to advise upon as its all very much a grey area and hinges upon the level of work that is done at your base.

Only work at my home/base is some basic planning activities. All paid work, freelance guide, is at other various locations 100km+ away from home

 

[Slim]

I had a similar situation for the past 5 years. I got an accountant to sort out the first two years for me. What he allowed for the car was depreciation based on work versus personal travel. I also claimed the diesel cost and hotels/meals while travelling. With an EV, which I now have, you can calculate your average use per km and multiply by your unit price of your home electricity bill. I haven't used the depreciation since the accountant did it as Covid knocked travel on the head. This might not be, technically, the correct approach so I would suggest an accountant for the first year. It's worth the fee, which is tax deductible.