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Claiming VAT Self Employed Courier Driver

Claiming VAT Self Employed Courier Driver

Client using a leased Van for a courier business.  He can give the VAN back at anytime to the lease company.  He is thinking of becoming VAT registered.

The Van will be kept at his home and he says there will be no private use.  I suppose the default position he can only claim 50% of the lease costs

Little confused on the VAT on mileage.  Is the VAT claimable based on the HMRC advisory fuel rates which I though was for cars only. 

 

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10th Nov 2017 10:17

The 50% restriction only applies to cars. If it's a van he claims all the VAT (if there is no private use).

If he's claiming the lease costs, he shouldn't be claiming a mileage. He should be claiming the actual costs of fuel (on which the VAT can be reclaimed), insurance and other costs, not covered by the lease.

Thanks (1)
10th Nov 2017 10:27

There is no basis for a self-employed individual to claim VAT based on mileage. It is actual costs, either adjusted for private use, or with scale charge output VAT.

This is all basic stuff, so I'd be appalled if you were charging people money for your "services".

Thanks (1)
By Ruddles
to Portia Nina Levin
10th Nov 2017 16:15

There is a third option - but not the one suggested by the OP.

Thanks (0)
10th Nov 2017 10:51

50% of lease costs ? VAT on mileage ?

Where did that come from ?

Consider the flat rate scheme, although, with a leased van, it may well not be beneficial.

Thanks (0)
to lionofludesch
10th Nov 2017 11:01

lionofludesch wrote:

Where did that come from ?

It must have fallen out of the tree.

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to Portia Nina Levin
10th Nov 2017 11:14

The one you shook ?

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to lionofludesch
10th Nov 2017 12:13

I didn't shake it. I merely noticed that it had been shaken.

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to Portia Nina Levin
10th Nov 2017 12:17

Oh yes, that's right.

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By Briar
10th Nov 2017 16:00

"He is thinking of becoming VAT registered".

Is he thinking alone, or are you offering some advice? Given your lack of knowledge, maybe he would be better off working it out for himself? (see comments by PNL)

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