Legal question re duty.

[Maurice_Mynah]

Those of you who know me, know I do everything I can to ensure I am within both the letter of the law and the spirit of the law. Sometimes however I need the law either being pointed out to me, or, if it's complicated, having it spelled out to me. I have reached a point where I need directing (again!).

I am self employed (Antiques and collectables dealer) and my vehicle is not part of the business. However, as with everybody else, times are difficult and I need to diversify a little.

I have had an idea for a business opportunity but it would mean using my car as part of the business. I would, on occasions, be delivering stuff. I know about upgrading the insurance etc. but I am not sure where I stand regarding the Biodiesel I make. I run on 100% Bio.

Can someone please advise me as to the duty implications, and possibly the duty rates so I can do a costing and work out the viability of my idea. I would expect my mileage to be 6k  a year private and 12k a year business, if that's relevent.

[Julian]

I'm in a similar position.  I'm self employed and my car (when it's running) is my personal property and not part of the business.  When I use the car for work I charge the milage against profits at 40p per mile (assume this is still HMRCs current rate).

What I legally run my private car on is up to me and nothing to do with my business.

[hifly]

you can use whatever fuel you want in a business car, its a "production" limit not a usage limit, just claim a milage rate of around 40p/mile your accountant will advise you of the correct rate.

[RichardP]

As Hifly say, you can claim every mile you do for business regardless of what fuel you use. This tax year you can claim 45p per mile for the first 10k miles and 25p per mile thereafter. Just keep a log of all the trips and mileage you do, you don't need receipts for fuel you put into your vehicle.

With you 12k business miles, that would be 10k@ 45p (£4500) and 2k at 25p (£500), so £5000

You may also be able to put the additional cost of business insurance against tax, but check that one.

http://www.hmrc.gov.uk/paye/exb/a-z/m/mileage-expenses.htm