Private van used in Ltd company

Private van used in Ltd company

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I am "helping" out a friend with the tax returns for a limited company. He purchased a large delivery van privately and used this in his own private ltd company. There was no private use of the van. The company ran a straightforward delivery service. He collected and delivered large items. Although he VAT registered he didn't put the van through the company and claim VAT. Can he claim ALL the fuel used in the van and the cost of ALL the repairs & the VAT on the receipts? Also, he was the director and shareholder of the company so can he claim subsistence allowance at the rates allowed for lorry drivers, or does he have to provide receipts? When I asked for his subsistence receipts he told me he threw them all away! I won't tell you what I said to him. Any help would be much appreciated.

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By zebaa
11th Apr 2012 19:54

Can he claim ALL the fuel

Can he claim ALL the fuel used in the van - Fuel used in business only.

and the cost of ALL the repairs - No.

& the VAT on the receipts - Fuel yes, repairs no.

Also, he was the director and shareholder of the company so can he claim subsistence allowance at the rates allowed for lorry drivers - Yes.

Or does he have to provide receipts - can do either, but not if he has lost them.

He might be better claiming mileage rates, suggest you do the calculations.

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By bluetone
13th Apr 2012 11:57

Thanks for that. I would have calculated the mileage rates but he stopped keeping records after 2 months - aaarrgggh. I have delivery towns for the drops but we're talking about a lot of work to create mileage records & this is unpaid help to clear up a mess, but I may still have to do it - or better still I could get him to google the mileage for each drop.

The van was only used in the business so I was hoping I could claim 100% fuel for business. The friend had use of a car and motorbike for private use.

I thought about putting the van into the business, but it was second hand and only cost £2.4k and he still owns it after closing the company down, so he'd have the transfer of assets to deal with.

Thanks for your help - I'll have to work out a few options and go with the least painful.

 

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