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bigduckontax, Accountant
Category: Tax
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I’m wanting to go mobile as play therapist/psychotherapist

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Hi I’m wanting to go mobile as play therapist/psychotherapist needing water storage and seating so will be purchasing a motorhome.This will have to be a secured loan against my house while I can build up enough business I will still work during the week for an employer.How do I sort out this expense for business as I will use at weekend. I am a sole traderThanks

Hello Kirsty, I am one of the experts on Just Answer and pleased to be able to help you with your question.

A long time ago, when I did the accounts for a friend, a florist, he bought a mobile home and in those days it was not classed as a car, but a van. Unfortunately, this is no longer the case!

You will be entitled to Capital Allowances (CA) in respect of your mobile home. These would be those for cars and depend upon the emission profile of the vehicle. You should claim say 5 / 7 say 71.5% of the CA against your business. You can offset the interest element of the loan against your business. You are getting into a complex area with your mix business and personal activities and concerned so the maintenance of meticulous records is recommended. As far as the use of the mobile home for business travel is concerned then the simple way is to claim 45p per mile (25p, over 10000 miles). This is an HMRC rate designed to reimburse both capital and running expenses.

I do hope that I have been able to show you a way forward in this matter

Customer: replied 8 months ago.
my current role is £32k before tax
Sole trader could be as little as £1k in the first year, so makes a loss, just confusing ! So If cost is £35k minus 2/5 useage then I’m asking for £25k to go down as business cost and CA? Over how many years?

Losses on your self employment business can be set against your employment earnings or carried forward against future profits from self employment indefinitely as convenient. Just be careful when doing this not to waste your personal allowance with the overuse of losses against employment income.

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Thank you for your support.