Re: Claiming a loan as a Sole Trader?

Simon wrote:

Ronald Raygun wrote:
Alan Ferris wrote:
But all hours not working it is available for private use. Because
hem decides to sleep is his own choice. If you go this route and get
pulled up for an enquiry you are really going to struggle to support
the claim.

Availability for use is not relevant, it is actual use which counts.
Otherwise you could argue that at *all* times when a vehicle is not in
use it in fact "available for" *both* business and private use, and even
if you were to say that the "official" availability should be counted as
business or private depending on the purpose of the next trip, then you
are stuck with a Schroedinger's cat problem: While parked outside his
house overnight, it is not yet known what the purpose of the next trip,
in the morning, will be - it may be private or it may be business, but
it won't be known until it is actually takes place.

The only reason I didnt mention that cat in my other post today is I
could not remember ow to spell it, Thanks Ronald.

Does availability come into it on SE rules, I thougt it was actual use.

So do I, which is why I said it. Spot the "otherwise" intro to the cat bit.

I was thinking of the judges comments on the Mallilieu and Drummond
case, leading to the motive for the purchase. so when you purchase
something that will have common usage, private and business, then the
private takes preference and you can only apportion when something is
exclusively for business use.

The point of the Mallalieu case is that *motivation* for purchase was
judged *not* to be a deciding factor in whether the cost of her black
suit was to be an allowable expense.

So when it is not in use for business, the default possition is private.

It's not that the private takes precedence as such, it's just that the
rules say it must be *entirely* for business ("wholly and exclusively")
to be allowed as an expense against income. So in theory if the car has
mixed use, none of its cost can be claimed. But because the cost of a car
can be spread over the use it gets, i.e. number of miles driven, and it is
possible to say that any particular mile driven is W&E for business use,
the mixed element can be extinguished in this way. Note that any particular
journey cannot count as business miles if that journey has a mixed purpose
unless the private part is merely incidental.

With Mallalieu, even though the court may well have accepted that she would
not dream of wearing the black suit privately, she was unable to convince
the court that this meant she could apportion the use (by time) as 100%
business and 0% private, because even while wearing it for work, it still
fulfilled the ordinary private purpose of clothing her *at the same time*
as the business purpose of meeting the work dress code requirements. So
there was mixed use and that was that.

.

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