Are car repairs tax-deductible?
If you’re wondering whether car repairs are tax-deductible, read on. Many people wonder if they can claim tax relief after forking out for repairs on cars they require for work. Motor expenses are only tax-deductible if the cost has been incurred “wholly and exclusively” for business reasons. For instance, you can claim tax relief on fuel used as part of your job, though this doesn’t include travelling to and from work.
Which methods can I use to calculate my mileage?
If you’re self-employed and need to work out your motoring expenses, you can use one of two methods. You can either claim a fixed rate for each of the miles you have travelled on business. Alternatively, you can claim actual expenses by using detailed records of your expenses. However, if you use the first method (the mileage method), you won’t be able to claim for repairs.
The Actual Cost Method
With the second method (the actual cost method), you need to keep records of all your motoring costs. These can include your fuel, insurance, tax, repairs, servicing, parts and MOTs. Do you use your vehicle for both private and business purposes? If so, you’ll only be able to claim the proportion of expenses linked to business use. You can work this out by finding out how many miles you drive on business compared to overall. For instance, if you drove 10,000 miles a year and 6,000 were on business, you’d be able to claim 60% of your repair costs.
Record mileage accurately
If you’re using the actual cost method, you need to remember your mileage at the start of your accounting period. You’ll need to take a note of the figure at the end. Once you have decided which method you want to use, you have to stick with this until you replace the vehicle.
Who can claim business mileage?
Various self-employed people can claim business mileage. This includes sole traders, contractors, employees and the directors of limited companies. It is designed to be claimed for trips that are necessary for business to be carried out, such as trips to see clients. Personal trips and commutes won’t count towards your mileage. The reason you are permitted to claim business mileage is that vehicle running costs reduce your profits. You can reduce your tax burden when you claim the mileage that you are entitled to.
Can my employee claim mileage?
If you have an employee that needs to claim mileage, they should be able to claim from you. If you don’t pay business mileage, they can claim it from HMRC. Business mileage can be claimed for costs related to the use of cars, vans, motorcycles and bikes. However, only limited companies can claim mileage for bikes. You can’t do this if you’re a sole trader.
Examples of business journeys
If 100% of the costs attached to business journeys came out of our own pockets, this would get very expensive. If you’re making a journey for a business purpose in your own vehicle, you can make a claim to cover the cost of the fuel, repairs, MOTs, tax and electricity if you’re using an electric vehicle. According to HMRC, a business journey is any trip other than your normal journey to or from work. This could include a journey to a business event, a trip to a temporary office, a customer or client’s workplace or a training centre.
The 10,000-mile limit
There is an approved 10,000 mile limit to what you can claim, but this only applies to one individual job. The 10,000-mile rule can be applied to each of the jobs if you are an employee with multiple jobs and these employers are not linked to each other. If work colleagues are travelling with you, you’ll be able to claim 5p per mile for each passenger. However, they need to work for the same company as you. If you’re an employee, the company must agree to pay for the passengers first. Any extra funds you receive from claiming more than the allowance will be treated as taxable income.
How Wyatt Auto Services can help with repairs
At Wyatt Auto Services, we regularly service motorists that need to claim for business expenses related to using their vehicles. We are a family-run auto centre and garage based in Barnsley and can help with car servicing, car repairs and MOTs. The services that we offer get you back on the road safely and legally as quickly as possible. More and more motorists are recommending us to their friends, family and business associates all the time.
Decades of car maintenance experience
The mechanics at Wyatt Auto Services have many years of car repair and maintenance experience to draw upon. Our team of mechanics can work on all makes and models of vehicle. If your vehicle is still under warranty, we can service it without breaking any terms and conditions. We’ll use official parts that we’ve sourced straight from the manufacturer if we need to replace anything. We can help with tyres, brakes, clutches, diagnostics and more. All our work is carried out to the highest possible standards.
Car repairs and MOTs in Barnsley
We have been one of the most trusted and efficient car garages and auto centres in Barnsley for many years. Let us take the fuss, stress and strain out of maintaining your vehicle. We’re also proud of the quality of our aftercare service, ensuring you can still get all the help and advice that you need even when you’ve driven your vehicle away. We offer same and next-day MOT’s plus full and interim servicing.
We hope that this has answered the question of are car repairs tax-deductible? To reach us today and find out more about what we can do for you, give us a call on 01226 979 087. You can also reach us by completing the form on our website. We’re ready and waiting to discuss your requirements with you. We can book your car into our fully-equipped auto centre at a time that’s right for you.