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Highrover
January 5, 2024
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  • January 5, 2024
  • 1 reply
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I am a self-employed delivery driver and struggling to correctly apply direct costs to categories that will allow reductions in "Allowable Expenses" 

 

I traded in my car and took out a loan to purchase the van that I use, solely for business (I use my wife's car for personal use). This was before starting the business. 

 

How can I get the loan repayments to show as an allowable expense? Surely this is a direct cost to the operation of my business. Any help appreciated

 

Thanks

1 reply

G
GeorgiaC
January 5, 2024

Hi Highrover, thanks for joining the Community

 

In general, loan repayments can be categorized under Repayments of loan/overdraft.

 

Please note that you can claim capital allowances if you purchase major assets that your business will use over several years. You can usually deduct the full cost of these items from your profits before tax.

 

Some items that can’t be claimed as an allowable expense on your Self-Assessment but can be claimed as capital allowances, include plant and machinery (including vans and cars). 

 

Claiming capital allowances on some items, such as a vehicle, means that you cannot make a claim for the same item under simplified expenses. 

 

If you need further guidance, we'd recommend contacting your bookkeeper or accountant for support. You can also check out our online guide on how to categorize transactions in QuickBooks Self-Employed. 

    L
    Lena628
    February 26, 2024

    Thanks for your post. 

     

    Can any step thought HOW to add /claim capital allowances on some items e.g. a vehicle within the Quickbooks Self Employed software (UK)?

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