I have searched lots of posts and almost got this answered but I would be grateful if someone could clear this up.
I am claiming business miles travelled in a private car at .45p per mile for the first 10,000 miles & reclaiming the VAT element of the fuel.
Do I still calculate the business expense for the tax return at 45p per mile or reduce it by the amount of VAT reclaimed (ie 45p - 2.16 = 42.84p per mile, based on 13p per mile for fuel).
Thanks
Mike
-- Edited by JMT on Monday 28th of January 2013 08:40:04 PM
Before answering that can you answer a few questions please :
- Are you a limited company or self employed.
- If self employed are you charging VAT because you are over the threshhold or by choice?
- If self employed have you changed your car since breaching the VAT registration limit?
kind regards,
Shaun.
-- Edited by Shamus on Monday 28th of January 2013 10:29:51 PM
__________________
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.
Well, at least you can claim using mileage rates but you've hit the scenario that slipped through the gaps when HMRC were slapping all of the documentation together.
Congratulations, you've managed to be the first person to absolutely stump me in a year, lol.
Everything in the HMRC documentation is written from the perspective either of a limited company or the employee's of a sole trader (I've looked at all of the usual suspects (BIM47701, 700/64, etc.)).
With a sole trader the business and the person being one and the same throws up a flaw in the documentation.
Thinking about it logically though the real scenario here is that the 45p per mile is a reduction in profits, the VAT reclaim increases profits.
My take on that would be that from a self assessment perspective the full 45p per mile would be recorded in box 11 for the mileage allowance but the profits of the company are going to be a little higher due to the reclaimed VAT.
However, unless others such as Mark and Tim concur with my conclusion I would give HMRC a call in the morning to confirm the scenario in relation to a voluntarily registered self employed person claiming VAT on mileage.
Sorry that I'm not of more use in this instance,
kind regards,
Shaun.
__________________
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.
