A company's director is not on payroll and is not remunerated by the company. He uses the company's car for work (not commuting) and he insists in claiming mileage allowance as expenses:
1 - Is the director still considered an employee of the company? If not, is claiming the mileage allowance allowed?
2 - For claiming VAT on this mileage allowance, I understand you have to keep fuel receipts anyway (in case HMRC requests). So why not claim VAT directly on fuel receipts? What is the advantage in claiming on mileage allowance?
Any advice will be much appreciated.