Input VAT for director's travel | AccountingWEB

Input VAT for director's travel


A client was working full time, and in his spare time was spent trying to acquire a suitable franchise. This involved a great deal of travelling. At that time, guided by an accountant friend, he claimed VAT on mileage as follows (through a limited company which he set up): If the return mileage from his home was 100 miles, he would multiply this by a rate of 21p (have not seen this anywhere in the rules?), treat this as the gross input, then calculate input VAT as the appropriate proportion of this gross input. Can someone tell me if this is familiar to them?

Also as - while he was working full time - his 'work' on trying to acquire a franchise was done from 'home', would you agree that all his travel expenses would be allowable? 

Finally, while I am here anyway, the thorny question of entertaining. I know this is disallowed of course. But is there any scope for considering some of the teas and coffees as meeting expenses?

Many thanks in advance.






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What I would have said

mr. mischief |
mr. mischief's picture


foxtrot |


George Attazder |
George Attazder's picture

Pre-trading expenditure

Paulsoper |