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Post Info TOPIC: Mileage on VAT registered businesses
mushroom


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Mileage on VAT registered businesses
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Hi all, just checking something.

I spoke to HMRC agent's helpline regarding a client who is a sole trader claiming mileage for his personal car use in business, and is now over the VAT threshold.  He is changing his car soon, and, correct me if I am wrong, but is there now an issue using the mileage option?

I phoned HMRC agent's helpline this morning, only to be told that his VAT registration is nothing to do with anything, he can claim 45p per mile.  I asked the guy to make sure he was correct, so he spoke to a technician who confirmed this as correct.  Is this right?  I had it in my head that this route would  be unavailable once he changed the car.



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Peasie


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My opinion....
The VAT registration will not alter anything - but it is because he is earning over the VAT threshold that things change. When he next changes his car he won't be able to use the 45p per mile method - but until that date he can continue using the 45p per mile.
Disclaimer - this is only my opinion but appears to back up your own view so maybe there's something in it.

Obviously my dislaimer doesn't use the usual legal jargon - how much better the world would be if the small print was written in language you could understand.



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Shamus


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Peasie's right.

Only addition to this would be that they could of course incorporate. They're making more serious money now so why not have a more serious legal form for the business?

for the mileage question refer to this link :

http://www.hmrc.gov.uk/helpsheets/hs222.pdf#page=3

and actually, you may find this whole discussion of interest :

http://www.book-keepers.org.uk/forum.spark?aBID=106474&p=3&topicID=35975069&page=1&sort=newestFirst

wierd entry of mine in there. I'm answering Peasie in that thread but there isn't a post from him in the whole thread and he only makes the statement that I am responding to in this thread over a year later! spooky.

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Shaun

Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Peasie


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I think the sort order may have something to do with the weirdness of that thread. There is a post by me.

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mushroom


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I have just telephon the VAT helpline, and they are not aware of anything to this effect either, I can't see anything on HMRC's site about this area. It actually may have been this site where I seen the info, can't remember to be honest. Maybe someone can point me to the appropriate link in HMRC's site to check this out.

 

Sorry, just editing, posted this message as the other ones were posting as well, only just seen the link, thanks



-- Edited by mushroom on Thursday 28th of July 2011 03:16:50 PM

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