Question for the accountants

Tom

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I'm claiming back my business miles through my ltd company (miles done in my own car). I'm claiming back at £0.40 per mile (first 10k) for a diesel.

On the gross expenses claim, can I deduct VAT from that amount, and claim that back from my VAT return?

Example:

1852miles * £0.40 = £740.80

VAT of £740.80 = £110.33

Can I deduct £110.33 from my next VAT payment?
 

Vae

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No.

What you are claiming is an allowance at a set rate and thus you are not paying VAT since you are not buying something with VAT included on it.

If the company was paying for the fuel itself (not really advisable due to the harsh benefits rules unless you are using a HUGE amount of fuel) you still wouldn't be able to claim the VAT unless you paid a scale charge for the car per month. SO normally you'd work out how much the scale charge is and if the VAT reclaim is higher you reclaim the VAT and pay the scale charge.
 

Gumbo

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Thread Ressurection!!!!!!!!!!!!!


Hi,

I work for a motor factor, selling car parts to the trade, and have been offered the use of a van for my daily commute. This is really as a security measure as we have run out of room to store the vans inside overnight.

I understand I'll have to pay some tax for this privilege, and that it's quite a lot less than regular company car tax. I think it's dealt with in my tax code, or through PAYE, or something.

Can you fill me in on how much, and what I need to do, so that I can do some sums and see if I'll be better off using the van or carrying on as I am.

Thanks very much for your help and advice in advance.

Your humble servant,

John (Gumbo)

ps, Accountancy forum dammitt!!1!!1
 

GDW

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The maximum taxable benefit for a company van in 2003/04 is £500 ( if up to 4 years old and £350 if older than 4) and this includes fuel for private use. So its a much cheaper option than the company car, so you havent much to worry about.

The exact cost to you depends on your current salary plus benefits in kind (one of which is the van). So if you earn £20k pa then with the van you will pay tax on £20,500. Without exact details I cant give you an exact sum but it will be a maximum of £200. This will deducted by your employer at source assuming you are PAYE
 

Gumbo

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That's exactly the sort of response I was hoping for, do not underestimate the usefulnesss of a gaming forum populated by accountancy professionals.

Thankyou very much GrampsWrinkle.

Looks like a net gain for me by miles to take up the option. I can now get my silly weekend motor on the go on a very limited mileage policy, and ditch the diesel citroen I currently use for the commute.

Woohoo!
 

Vae

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Heh my next door neighbour works for Erith construction/demolition and refused to accept a company car, even though he was a fairly senior manager, simply because of the company car tax. Instead you'd see him thrashing an astra van up and down the motorways at about 100mph :)

Oh and as GDW said it'll cost you £200 if you are a higher tax payer in the 40% band otherwise it'll be at basic rate (22% i.e. £110) or less.
 

Tom

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Yeah better to own your own car, and charge your company for the business mileage. Much cheaper tax wise. I charge my company £0.40 per mile for the first 10k, it doesn't cover the cost of running the car, but if I left the car in company ownership, it would cost much more in tax.
 

Jupitus

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Vae... will you do my tax return for me pweeeeeeaaaassseee???? :(


;)
 

Vae

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Jupitus said:
Vae... will you do my tax return for me pweeeeeeaaaassseee???? :(


;)
Pfft under the new money laundering transactions I have to report all suspicions of possible money being obtained from illegal activities no matter how small and since you're associated with FH I think you automatically qualify as suspicious :p

So, in other words, no chance :p
 

Jupitus

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Hehehe... I think there are 2 chances of anyone making money out of this old place.... slim and none :D
 

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