Tips for vehicle accounting

I’m getting a new vehicle and using the opportunity to review how I account and claim car expenses for VAT and income tax. I’m looking for a simple way to deal with vehicles in QF!

Previously I’ve been using Fuel Scale Charges to account for VAT. I don’t think that was worthwhile so I don’t think I want to continue.

I could simply reclaim 45p per mile against my tax bill, but I that may not be in my benefit. So that leaves recording all journeys and claiming a percentage as a business expense. What the easiest way to do this in QF - given it’s not too simple to split transactions.

For example, I’m contract hiring, let’s say that’s £500 a month inc VAT. I reclaim half the VAT (£50) leaving £450 to split (say) 60:40 business/personal. So I need to split with £270 to business, the rest to personal drawings. As I say I find splitting in QF a bit of a faff. Twice the faff when drawings are involved so, what’s the easiest way?

It might be how I already split transactions if the best and or easiest. But I’m willing to hear how other folk do this - or listen to advice if there’s a completely different way!

Thanks

Hello @glasgow

For tailored professional advice I would recommend running this past your accountant.

I will leave this thread open for now as there are some accountants who comment in the forum who may provide some insight.

Thanks @QFSteve, yes appreciate comments about asking some who actually knows.

In my case I have done the HMRC webinar about cars. I’m pretty sure I do want to use the actual costs and apportion them to business and personal usage. So I’m just looking for the best way to do this in QF.

No complex capital expense as I’m contract hiring.

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