Self Employed Motoring Expenses - Method

[soprano]

Technical Question -

Two methods of calculating motoring expenses, the actual basis (after applying a deduction for personal miles) or the 45/25ppm basis.

It used to be the case that if you purchase a vehicle at a time your turnover is greater than the VAT threshold, you are obliged to use the actual basis and could not use the 45ppm basis. If you were using the 45ppm basis at a time your turnover exceeded the VAT threshold, you could continue in that way until such time as you changed your vehicle, at which time you then had to start using the actual basis.

This is contained in (BIM)47701. I have seen mention that this no longer applies (the implication being that you can exceed the VAT threshold and elect to use the 45ppm basis). Does anybody have any idea if that is correct?

[soprano]

Thanks Eric

When it says 'with the legislation as drafted', do you happen to know which legislation is referred to (and thus presumably changed the position from 12/13 to 13/14)?

[soprano]

Think I've found it - section 18 and Schedule 5 of the Finance Act 2013.

Thank you.