I have a self-employed courier, who is considering a) incorporation and b) VAT registration. It would be a voluntary registration.
1. Assuming he stays self-employed, how do we evidence that fuel costs are greater than 2%, when he's claiming mileage. Is simply using the HMRC approved rates?
2A. If he incorporates, presumably the vehicle (van) would need to be sold to the ltd in order for it's fuel to be counted, otherwise the fuel spend wouldn't be the traders?
2B. Would other van costs (repairs etc) count?
Anything else I should consider?