Motor expenses - private car.

[NickleIckle]

A quick question -

If I have a private car that I use for business - I work out what percenage I use the car for business each month, and claim that percentage of all motor expenses as a business expenses, right?

However, if I have a car that is only used for business, is it true that you still can't claim 100% of these motor expenses as a business expense? An accountant once told my husband that in this case, he still could only claim 75% because most people still use it a certain amount for private use anyway. Is this true?!

N

 

[TheBlock]

You cannot claim for the travel from home to your permanent place of work.Where you trave from home to a tempoarary place of work the travel distance is the lesser of Home to Temp Place or Permananet Place to Temp Place. Also if you claim the car is 100% for business use only revenue would be entitled to ensure you leave it locked in your place of business when you are not working.

Even a trip to the doctors/shop is private use and could result in revenue penalties. When you think about it there will always be some form of usage that is not business related and it's usually more than 25%.

 

[NickleIckle]

That makes sense, so unless you work from home, there is always some 'private' travel to and from work? And if you work from home, then you wouldnt need a car for work!
My husband doesnt have a permanent place of work - just customers all over the place. But still, a certain amount would be 'private' - ie driving to the first customer, and home again from the last customer.
So is there a limit to the amount you can claim? Ie 75% or more or less?
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[TheBlock]

I don't believe ther is a limit but revenue are entitled to see a log you should be keeping of all mileage and wheter it is business related or Personal.
This log can be verified against your odometer and against your diary to verify that the business mileage was business related. The onus is on you to prove the business mileage hence the keeping of log and diary.

 

[ButtermilkJa]

Yes, if you use a private car for business there will always be a certain percentage of personal use. I'm not sure if there is a limit as such. It justs depends on what you can prove. If 90% is legitimate business use and you can prove it then I doubt Revenue will argue if you claim for 90%.

The only way to apportion 100% of vehicle expenses to your company is to buy a commercial vehicle and use it for business only. This may only be applicable to Ltd. Co's as apposed to Sole Traders. You could also use the vehicle for personal use if wanted but you would then be liable to pay BIK (currently 5% for commercial vehicles).

 

[NickleIckle]

You cannot claim for the travel from home to your permanent place of work.Where you trave from home to a tempoarary place of work the travel distance is the lesser of Home to Temp Place or Permananet Place to Temp Place. Also if you claim the car is 100% for business use only revenue would be entitled to ensure you leave it locked in your place of business when you are not working.

Does this not only apply to emplyees claiming mileage? (see [broken link removed])

 

[Rico]

Just curious what are the odds of the being audited for this by revenue and what are penalties. Thanks.