How can sheet-metal repairs be included in the costs of a one-person company?
An increasing number of Poles decide to run a sole trader’s business. This means that it is necessary to deal with formal matters and incur all the costs of running a business on one’s own. Sometimes they can be quite high. They may be reduced by including in the cost of business services such as sheet metal repair of company cars. This allows considerable savings to be made. How, then, can sheet-metal repairs of a car used for business purposes be properly included in the costs of running a sole trader’s business?
Sheet metal repair and business management costs
Sheet-metal repairs can be costly. Especially those resulting from various types of accidents. Sheet metal services vary in terms of price and quality. There are really plenty to offer on the market. They can mostly be verified by comparing the customer opinions of the various bodyshops published on industry websites, such as Autobooking, available at the following address: . For a sole trader, it is essential that the repair of a company car’s bodyshell is documented by a properly issued invoice. It is a document which is the basis for including this type of service in the current costs of running a business.
Deductibility 50% or 100% VAT
The invoice for the repair of a company car’s bodywork can amount to even several thousand USD. If an entrepreneur wants to point it out as a cost of running his business, he must be able to prove that the defects together with the repair had a real impact on his business, increasing the risk, for example, of limiting the possibility of generating revenue. If this condition is met, a specific part of the VAT value may be deducted from the sheet metal repair performed. This may look twofold:
50% of the VAT on sheet metal repair can be deducted by those entrepreneurs who use their cars for both business and private purposes;
100% VAT on sheet metal repair is deductible if the vehicle is used exclusively for business purposes.
It is worth to see it on an example. If the gross value of the repair is 1 230USDto 230USD, VAT is due on this amount. For sole proprietors, this means that they can deduct $115 or $230 depending on whether their vehicle is used only for business or also for private purposes. In addition, the inclusion of a flashing repair in the costs of running a business reduces the amount of income tax due.
Voluntary insurance and establishment costs
In the situation where a car used for business purposes is covered by voluntary insurance, the insurance has been injured and the compensation has been paid the situation is slightly more complicated. The amount of compensation then constitutes revenue for the operator. The value of a flashing repair may still be included in company costs, provided that it has been paid for with the funds belonging to the entrepreneur and an invoice has been issued for the entrepreneur’s data.
The need for more or less repair of bodywork results from circumstances which most drivers prefer to forget about as soon as possible due to the expenses incurred in this respect. The possibility of including sheet metal repairs in the costs of running a business is therefore a privilege, which will certainly be appreciated by every owner of a car who runs a single-person business at the same time.
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How to include sheet metal repairs in the costs of a oneperson company
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