Need clarification of how to claim accurately for my car please!

[tigwig]

I have asked about this before but as it's the new tax yr I want to make sure I'm going to do this right from now on after making mistakes previously. So I have a car on business contract hire, a 7 seater only bought for minding. The monthly payment for it is £310.12 and this is for 3 yrs. Servicing and tax is included in that price. I have to pay insurance obviously, petrol and anything else related.
I understand I need to keep a record of mileage (something I previously wasnt doing) but I think it will be cheaper for me to claim the proportion of monthly costs? Is this right and is there anything else I need to know?

[sarah707]

There is a useful link in this information from hmrc :D

Care providers: Childminders: expenses (http://www.hmrc.gov.uk/manuals/bimmanual/bim52751.htm)

[Littleglees]

Fab thank you x

[Chatterbox Childcare]

Hi

You need to keep your mileage to calculate the business percentage.

Keep receipts for tax, insurance, services, petrol, car wash and anything else you use.

At the end of the year calculate your business percentage and apply the percentage to you costs.

i.e. Petrol = £1000 and your business percentage is 40% so you would claim a £400

You can also claim capital depreciation - you need to check your vehicles emissions because that determines the rate that you can claim each year. Again if you car is a people carrier then you can claim 8% (this is mine) and a cost of £14000 would be

£14000 x 8% = 1120 x 40% business use = £448 can be claimed. The following year you take of the 1120 off of your £14000 and start with £12800. Hope that makes sense.

And finally, as above, you can do the same with your interest if you have a loan. Contact your finance company and explain that you need your interest calculation and they normally send it to the end of the contract. I see that you have other parts included so ask them how the costs are calculated. Alternatively if they cannot help, contact your garage and ask how much a service costs and use that but get it emailed to you.

Hope that helps but if not, please post again

[MrAnchovy]

You need to log business journeys and also your total mileage. At the end of the year use the proportion of business mileage to claim the same proportion of hire costs plus everything you pay.

Alternatively just claim 45p per business mile up to 10,000 miles, 25p thereafter, plus 5p per mile if carrying a colleague.

If it is contract hire you are not purchasing the vehicle so cannot claim Capital Allowances.

Note that if you already used the fixed rate mileage basis in a previous tax year for this car you cannot change to actual costs now, you can only do this if you change vehicle.