Input VAT for director's travel

Input VAT for director's travel

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Hello, just a follow up please. A director can claim travel expenses (not ordinary commuting) using mileage rates under FPCS. The limited company can claim this as a deduction when calculating its trading profits.

The limited company can also claim input VAT on fuel using the advisory fuel rates (21p or whatever the rate is now, I understand it changes 4 times a year). My friend has sent me a link which states that this can only be claimed if the business is below the VAT registration threshold. Can someone confirm this whether this is right or wrong? It does not seem right to me.

Thanks - SA

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By Phil Rees
30th May 2012 12:45

Friend is wrong

I think the confusion is that a self employed person can only use the 45p route if the turnover is below the VAT threshold.

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By Towards excellence
30th May 2012 14:03

Thank you very much Phil, that was my guess - you have confirmed it!

SA

 

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