If you’re self-employed and use your car for business purposes, there are some things you need to think about. When an individual uses a car for work, they can claim certain expenses back from their employer. This applies to those who are self-employed, too, but there are some differences between them. Additionally, there are other things you need to consider when using your personal vehicle for your business.
Is it Necessary?
Before you start to look into the right insurance for your vehicle, first ask yourself if you truly need to use a car to conduct your business. Depending on what services you provide, you might not require the use of a vehicle at all, especially if you live in a town or city that has good transport links. For example, if you work as a freelance graphic designer, what purpose would a car serve you? If you don’t need a car as transport to meet a client, then it might not be worth bothering.
Expense Allowances
As mentioned above, you are entitled to claim for certain things when you’re self-employed and using your car for work. These include insurance for your vehicle, parking charges, breakdown cover and fuel, to name a few. You can see the full list and additional information here. Make sure you know what you can claim on expenses to better manage your business finances and avoid issues with the taxman.
A Suitable Vehicle
Depending on what your business is, you will need a vehicle that is suitable for your needs. For example, if you work as a gardener you will need a vehicle large enough to hold your tools and any foliage waste. Even a large car might not be suitable for this; therefore, a van or pickup truck would be an ideal choice. This type of car will also be suitable for other tradesmen such as plumbers, roofers, contractors, etc. However, if you’re a driving instructor, then a more basic car will suffice.
Insurance
It’s imperative that you make sure you have the correct insurance for your vehicle. If you are using your car for business, perhaps this includes driving your clients back and forth. If there was to be an accident during a journey in which your client was in the car, you could be liable for their safety. Call up your current insurance provider for more information or use comparison sites to find the best deals available to you.
Vehicle Modifications & Extras
Once you have selected the right vehicle for your business and have the correct insurance in place, consider whether it needs any modifications or any extras that aren’t standard. Do you need additional lighting? Response Vehicle Lighting offers rotating beacons, which are useful for different purposes. You may even want to consider having your company name and logo painted onto the car as advertising. Think about what best suits your business and if these extra additions are needed.
A lot goes into maintaining a vehicle; think about these points if you’re considering using yours for business.
