I’m a sole trader, so what’s the best way for me to run my car on business?
YOU don't have to be a company to run your car through the business. Accountant Tim Heaton explains some of the advantages sole traders enjoy by putting the running costs of their cars through the business accounts.
Sole traders: claim business costs
By Tim Heaton, The Tax Partnership
IF YOU are a sole trader, all you car running costs can be met by the business, provided all private motoring elements are deducted.
That’s because the tax position of the sole trader is very different to the limited company (see I run my own company: how should I run my vehicles?).
If you are a sole trader, your business only exists as a trading medium.
It does not ‘exist’ as a separate entity – like a limited company.
Therefore, a trader can keep a car (or van) in their own name on the registration V5 document.
All the running costs can be paid for by the business. Then the trader
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