I know it may seem like a simple question, but can I just use the Can I use the approved mileage rates in a Limited Company by posting the amount to the TB eg(45p * 10,000 = £4,500 Dr - Fuel Expense - - - £4,500 Cr - Directors Loan Account)
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Yes
assuming you mean payment for business mileage the director in question has driven in his/her own car. I assume business mileage records are maintained to support the claim.
Agree with the above, but if you do it that way you are missing the opportunity to recover the VAT included in each 45p. If the company is not VAT registered that will not matter of course. Perhaps that is why you are doing it the way you describe.
Are you saying ...
Agree with the above, but if you do it that way you are missing the opportunity to recover the VAT included in each 45p. If the company is not VAT registered that will not matter of course. Perhaps that is why you are doing it the way you describe.
... that the company cannot reclaim the VAT input tax included in the advisory fuel rate element (not the whole 45p) because the mileage allowance is being credited to the DLA? If so, I do not agree with you.
No I don't mean that at all.
No I don't mean that at all. I just mean the simple way that the OP is describing how to account for the reimbursement does not mention the process by which the recoverable VAT is to be identified and accounted for. In particular he debits the whole of each 45p to Fuel Expense instead of only the net amount, with the VAT going to the VAT account.
If the OP has in mind a separate process to identify and recover the VAT element (obtaining VAT receipts from the director etc.) and then account for it separately, or if the company can't recover it anyway, my point will not have been of any interest to the OP as he will already have been on top if it.
If however he wasn't already on top of the VAT aspects he might have found my comment helpful.