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Post Info TOPIC: Claiming Back Mileage Costs
Holly_JackofAllTrades


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Claiming Back Mileage Costs
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Hi All,

First time poster here!  biggrin

Here are my questions:

  1. Ive been looking into claiming the VAT back on the miles we claim for.  According to various sources you can claim the VAT back on the portion that is attributed to the fuel used for the miles, not the wear and tear of the car.  Only thing is, it says you can only do this for employees of the business, literally on the payroll.  Well, since no one is officially employed by the company yet, can we still do this?
  2. Similar question to the above, but for the 50p per mile rate when travelling with passengers.  But only if the passengers are employed by the company, which again, no one is, yet.  I mean, I assume itd be OK for my husband & I because were both registered as directors, but what about the many journeys my husband & his brother (to be employed by us when we have funding) have been on together?

This one's slightly off topic, perhaps I need to post this elsewhere:

  1. To reconcile the bank account in Sage against the purchases we've been making (through the company account), Ive been entering the money weve been funnelling in as Capital.  Is it going be an issue when it comes to getting that dosh back (once we get investment)?  Im now wondering if it should have gone down as a directors loan?  How would we log that transaction in Sage of pulling it back out again?

Thanks in advance for any and all help. x

 

 



__________________

Director and Bookkeeper to my Husband's new Startup.
Cheshire


Master Book-keeper

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Hi
Advertising is for established members so can you please remove reference to you company name in the signature bar on posts.



We cannot assist with owner managed businesses, besides we do not actually have enough information. This is something best discussed with your Accountant.


You really need advice about capital v DLA, or you could end up with future higher tax bills. Tax planning - 2nd word is key. An Accountant cannot sort the mess at the year end.



-- Edited by Cheshire on Wednesday 2nd of October 2019 02:16:31 PM

__________________

 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
Shamus


Forum Moderator & Expert

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50p rate????

Don't you mean 45p rate for the driver and 5p for the passenger? Thats different. That is not 50p for the driver.

VAT is not claimable on the 45p (or even 25p) rate. It is reclaimable on the petrol apportionment of that rate. A much lower figure.

Worth noting that the money that you have investe in the company will be repayable out of taxed profits so don't waste any early period losses that can be later utilised.

As Joanne states. See an accountant which may cost less than the tax losses likely to be incurred by poor planning.

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.
Cheshire


Master Book-keeper

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Yeah I clocked that!

Other thing worth a mention and I find I have to say it A LOT! Dont use 'various sources', not even HMRC (as they 'guides' are geared to them and not always the law). Only place to look and be certain of anythinbg is to look at the appropriate legislation.

__________________

 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
Holly_JackofAllTrades


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Hi All,

Many thanks for the replies.

Help me out here... I can't see where there's a ref to the company (probably just being blind!)

And are you saying you can't help me because I'm doing the bookkeeping for my own company?

Re. 50p, there have been plenty of times when there has been myself and my husband in the car travelling for business pursposes.  Same goes for my husband and his brother.  For these times I've read we can claim 50p, but only if we're all on the payoll (not contracted)... which no one is yet, so... still OK to do that?

Re. claiming back the VAT on miles.  As I said "you can claim the VAT back on the portion that is attributed to the fuel used for the miles, not the wear and tear of the car."  So I know it's only for the fuel portion.  But again, it says you can only do this for employees.  And since no one is officially employed by the company yet, is it still OK to do this?

Re. taking the dosh back out of the company.  To be honest, we need it.  We need it back sooner rather than later.  Though I get what you're saying, it'll probably save money if we hold out.  Thanks, I hadn't thought of that.

Accountant has been abit unapproachable until now, which is why I'm trying a forum. 

Thanks again.



__________________

Director and Bookkeeper to my Husband's new Startup.
Cheshire


Master Book-keeper

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Posts: 8646
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The moderator has removed your company name (from the sgnature bar and body of your post) so no worries on that score.

I have no idea where that quote is from, but would just add that if your Accountant has ben unapproachable to find a new Accountant. If they are aware that you are sketchy on the VAT aspects then they could look over your VAT return and providing appropriate guidance before it is filed.



__________________

 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
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