Mileage claim - self employed courier driver
I have a client who is a self employed courier.
His turnover is approx £60,000 pa. He is voluntarily registered for VAT.
He currently claims in his accounts for all motor expenses - van lease / fuel / insurance etc.
Can the alternative method be used ? 45p / 25p per mile. Does this apply to vans?
He does approx 70,000 to 80,000 miles per year, so the claim would be huge, and more tax efficient than claiming the actual expenses.
Does the fact that he is VAT registered prevent him from using this method ? (even though his turnover is below the registration threshold)
Is VAT reclaimable when using the mileage method rather than actual expenses ?
Thanks for help
- What would you do in this situation? 282 7
- Capital allowances anti-avoidance 406 14
- Limited Company - Personal Bank Account 3,698 76
- Providing registered office address to clients 185 4
- Foster Care 106 1
- Share premium or Directors Loan 789 33
- Halloween - do you celebrate it? 1,479 48
- TOMS - Travel Agents 39 1
- Insurance Claim & VAT 57 1
- Interest Free Loan - Salay Sacrifice? 268 5
- Rollover relief - when does gain crystallise in this situation? 134 2
- HMRC Money Laundering Visit 571 3
- Dividend Payments 497 12
- Employed clients and expenses 894 18
- More HMRC on gov.uk 672 12
- Payroll experience for beginning AAT student 166 3
- Interest on HMRC contract settlement 204 4
- Enquiry into tax return - how co-operative would you be? 446 8
- Goodwill gesture for providing work 489 12
- VAT reconciliation and VAT return on Sage 153 3
- Bonus Bonds 396
- Insolvency and whistle blowing 391
- Transfer of funds into recently set up company 302
- TPR imposes first penalty notice fines 264
- Husband proposes to buy the car as Director unable to acess finance 199
- Box 8 VAT Return - deposit payment 194
- Company Car Lease 172
- Finance Lease 162
- Form 42 154
- Demerger Reserve 136