Can I claim?
If you use any type of vehicle solely for your business, then you can claim the cost of the MOT test against your business profits. However, as you may expect, the vehicle has to be used in order for you to operate as a business and you cannot mix up capital allowances with mileage allowances.
Before you decide what to charge, you need to be aware of two things:
- “capital allowances” versus “mileage allowance” claims
- Private usage: only the business usage portion can be claimed.
When using SimpleTax you will find the MOT expense in your Self-Employed expenses list, under “Car and Other Vehicles: Licensing fees”.
If you decide to go down the capital allowance route you can claim all of the vehicle costs such as fuel, road tax and servicing costs. This does mean however that you cannot change and go for the mileage allowance option at a later date. The two are very different and you can only choose one or the other. Both require the exclusion of any private use.
The mileage allowance option allows you to claim a certain amount of money per mile of mileage accrued during business trips. Keep a record of your mileage in a log book and make it available should any tax inspection be carried out.
Capital allowances cannot be claimed at the same time. This therefore excludes you from claiming for the sort of costs we have mentioned above i.e. road tax, fuel and servicing. Charging for your vehicle in this way also means that the MOT cost cannot be claimed, although you can calculate any allowances due.
Mileage allowance on SimpleTax?
Any allowance due should be entered under “Car and Other Vehicles” - “other vehicle-related expenses”.
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