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Any VAT gurus ?


ioneabee

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As i use my Zed on a daily basis for work purposes - are any car related purchases :wacko:;) available for me to claim the VAT back

 

I am VAT registered but haven't gone down the route of the petrol vat reclaim - far to complicated and probably not enough mileage

 

I would estimate my business/private use to be in the region of 80% / 20%

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I wouldn't bother with claiming the VAT back, but would pay myself the £0.45 per mile that HMRC allows from company funds - saving on the CT element. Otherwise you're looking at some horrible calculations and probably not going to be much better off.

 

If your VAT reclaimable purchases are not huge you should consider joining the Flat Rate Scheme.. :thumbs:

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+1

 

I wouldn't bother with claiming the VAT back, but would pay myself the £0.45 per mile that HMRC allows from company funds - saving on the CT element. Otherwise you're looking at some horrible calculations and probably not going to be much better off.

 

If your VAT reclaimable purchases are not huge you should consider joining the Flat Rate Scheme.. :thumbs:

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I wouldn't bother with claiming the VAT back, but would pay myself the £0.45 per mile that HMRC allows from company funds - saving on the CT element. Otherwise you're looking at some horrible calculations and probably not going to be much better off.

 

If your VAT reclaimable purchases are not huge you should consider joining the Flat Rate Scheme.. :thumbs:

 

+1

 

Do the mileage allowance (you're supposed to keep a log of every journey start and end mileage)

 

Unless it's a commercial vehicle it's the best option mate.

45p per mile for the first 10,000 miles and 25p per mile after that.

 

That's according to my accountant (wife) :lol:

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I would suggest speaking to Craig (Flexib) he definitely knows his stuff and should be able to help you out. :thumbs:

 

viewtopic.php?f=66&t=58939

 

Thanks Steve! :thumbs:

 

The above posts are right, the mileage is the best way to go definitely for Ltd company, I personally use this method to reclaim the VAT back on fuel (as a percentage of the mileage/fuel reclaimed):

 

http://www.is4profit.com/business-advic ... overy.html

 

Rates need updating but good working example.

 

If you're not Ltd then could be worth looking more closely at it as different rules apply to sole traders. Either way if you're reclaiming any motoring costs you definitely need to keep a mileage log for back up just in case HMRC come a calling.

 

Thanks,

 

Craig

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