Disagreement re sole trader
Have a sole trader who is vat registered.
Has a company van used 100% business. To keep the mileage on the van down, and in line with the contract he uses his car as well for business.
Car is on a HP. If we put the car through the business can you choose to:
A. put petrol re car to drawings and claim vat back on the mileage only rate. (i have made sure he keeps a mileage log)
B. fuel through business and claim vat back and have a fuel scale charge.
I say you have a choice, and once made you have to stick with it.. A N other is saying as Vat reg, it has to be option B.
Can anyone confirm.