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Round the Benz
A sole trader provides chauffeured car hire services aimed at the well off and executives. He uses only large executive cars, such as the Mercedes Benz 'S' class. He provides his services to a large company, which pays him monthly based upon the number of journeys undertaken. He also has a number of smaller customers.
Readers' comments would be appreciated on the following points.
Round the Benz
A sole trader provides chauffeured car hire services aimed at the well off and executives. He uses only large executive cars, such as the Mercedes Benz 'S' class. He provides his services to a large company, which pays him monthly based upon the number of journeys undertaken. He also has a number of smaller customers.
Readers' comments would be appreciated on the following points.
* Capital allowances. Presumably the car can be treated as plant, but are there any conditions or particular points to watch out for?
* Expenses. Could a claim be made for his uniform and newspapers and drinks provided to his executive customers?
* VAT. Can input tax be reclaimed on the purchase of a new car?
Readers' thoughts on these points and any other comments or suggestions that might be relevant to the tax treatment of this type of business would be most welcome.
Query T16,544)
