Getting myself totally confused about motoring costs.
I have a new client, Ltd Co, VAT registered. 2 directors (husband & wife)
Used to keep a record of mileage for old van and use the formula fuel purchased x bus. mileage divided by total mileage.
Has since purchased a new van. 100% business use. Company Asset.
They also use their own private cars (non business asset) for business journeys.
I know I can claim all of the VAT for fuel & motoring costs for the Van that is used for 100% business. But getting confused about the personal car use.
Some of the fuel for the personal cars have been bought by the business account. Some the directors have paid by thier own cash.
The questions I have are:
Can the receipts for all fuel (business & personal cars be put through accounts and then a fuel scale charge applied, or is it best to keep a record of personal mileage and receipts for the personal cars only and apply the formula above again.
Can repairs for personal cars be put into the accounts & VAT claimed. Even if those repairs were paid by personal cash?
Also as he has a new van I beleive I am able to change the way that expenses are recorded eg keeping a record of mileage to recording actual costs.
The 40p a mile rate does this apply only to sole traders?
Will be imputting on sage.
Thank you to anyone who can help me out before I go nuts!
-- Edited by Silly Digits on Monday 28th of September 2009 10:09:31 AM
You can only claim fuel receipts and repairs if the motor vehicle is an asset of the company. If not, you cant claim the repairs and you can only claim relevant business mileage. The 40p a mile rate applies to all businesses.
You can only claim fuel receipts and repairs if the motor vehicle is an asset of the company. If not, you cant claim the repairs and you can only claim relevant business mileage. The 40p a mile rate applies to all businesses.
Wendy, If the van is owned and only used for business then you can claim all the vat back from the fuel receipts? I know you can for a sole trader but not sure about ltd co
-- Edited by lor on Tuesday 29th of September 2009 07:05:55 PM
Same as with a soletrader/partnership, for a limited company if the van is owned and only used for business purposes then yes it's fine to claim all the VAT back from the fuel receipts.
-- Edited by Wendy on Tuesday 29th of September 2009 07:28:39 PM
