Method Of Calculation For Working Out Business Percentage On Vehicle

[Josie28071]

Hi, can someone advise on the correct method for working out what my business usage is on my personal vehicle.

The vehicle was purchased in April at 22,500 miles, I started self employment in April also so we will go with 22,500 miles at the start of self employment.

The mileage now is 36,600 and I have travelled 363 miles for my business.

So, what percentage is business use and how is is calculated?

TIA

[EDDIE51]

2.57%
36600-22500 = 14100. 363/14100 x 100 = 2.57 %

[EDDIE51]

You have done 14,100 miles total and of that 363 miles is on business.
So you calculate the % of business use by dividing the business mileage of 363 by the total mileage of 14,100 and multiplying by 100.
Primary school maths!

[DocHH]

I agree with EDDIES51 in regard to the percentage calculation. However, as you are not doing many miles for your business, you may be better off just charging your "business" for mileage for using your private vehicle. The first 10,000 miles can be charged at £0.45 per mile, without tax liability, after that it is reduced to £0.25 per mile.

[Josie28071]

Thanks to both of you for your help.

DocHH, yes I completely agree and I will the 0.45p per mile method for my self assessment.

However, we are entitled to a little help from Housing Benefit but they want to know EXACT expenses figures including the percentage my private car is used for business, thanks to EDDIE51 it is worked out that it is a minimal 2.57%.

I'm assuming that I will now need to keep fuel purchase receipts etc just incase HB ever query anything, to be honest for the amount I can claim I feel it's hardly worth the bother I think I would rather not claim the motoring expenses, I asked HB but they said I have to as it's an expense?

Surely it's up to me if I want to put through this expense?

Anyway thanks again

[EDDIE51]

Yes you need to put the actual amounts for HB. But use the 45p a mile for the business accounts as it is easier.