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Post Info TOPIC: Self Employed Driving Instructor - VAT Registered!!!!!!!!
BHB


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Self Employed Driving Instructor - VAT Registered!!!!!!!!
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Yet more information requested re this client who is for some reason VAT registered whilst a long way under the threshold.

Managed today to finally get all her AA invoices/statements.  Claiming back all the VAT on the lease car as HMRC site states that if a lease car is for the purposes of driving instruction then all VAT is allowable. Claiming all the VAT on petrol, she has stated that she sometimes uses the car for private use, so should I be using the fuel scale charge?  She hasn't increased her income per hour since becoming VAT registered so deducting 15% off the sales figure for that which will put her £223.76 in the red to the Inland Revenue unless somebody on the forum can tell me if I've missed something.  Why do you think some bright spark advised her to become VAT registered, her weekly hours have not exceeded 28 in the last VAT quarter.

Sandra

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Davey


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Hello Sandra.

I think you may have to treat this like a normal Vat Account

ie Output Tax from turnover ie gross 10,000 vat 1304.35 8695.66 net

Add scale charge                                               23.66


Less Purchases                        Gross 7000     vat    913.04 6086.96 net


Payable to HMRC                                                     414.97


As an example

-- Edited by Davey on Tuesday 27th of October 2009 01:09:37 PM

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David
BHB


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Thanks Davey, I thought as much. 

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lor


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Can I ask what VAT scale charges are used for and how you came to the amount £23.66, so far I have only carried out vat return at 17.5% pre dec 08 and post dec 08 15%, never used scale charges before and I am curious to what it is for?



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semsley


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Scale charge is when fuel is used for both business and private mileage - you can't claim the entire VAT of fuel invoices if you use some of it for private transport.

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Advice from beyond the grave!!!

E&OE
Flex Accounting Services


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Hi Lor,

Did they not teach you VAT fuel scale charges within your AAT course ? Just asking out of curiosity.

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Beverley Flanagan MICB, CB Dip, PM Dip.
info@flexaccounting.co.uk
www.flexaccounting.co.uk
lor


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No I don't think they did, lol! They covered VAT, which I found pretty simple at the time because I am currently doing the VAT Returns in my Full Time job, but have never came across fuel scale charges before.

Thought I would ask what it was for just in case it comes up!

-- Edited by lor on Thursday 29th of October 2009 12:51:18 PM

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Davey


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Hello LOR The figure i used was an example figure but HMRC have a scale charge amount
this is the amount to add back for non business related fuel.

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David
lor


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Thnks David.

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