we have an individual with two businesses
he was previosuyl in a patrnership, but went it alone - and is VAT registered he's always used actual costs for motor costs under this business
he also has another business as a sole trader and he wants to use mileage rates for this one - this was fine when he was still in the partnership, but i'm not convinced now he's a sole trader and VAT registered for both
can anyone confirm?
Replies (4)
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If one client is the sole trader with two registrations, he needs to cancel one, and put all his activities into the other.
Actual motoring costs should be used, not mileage rates.
If one client is the sole trader with two registrations, he needs to cancel one, and put all his activities into the other.
If they are two separate trades, they should be reported separately.
Actual motoring costs should be used, not mileage rates.
Why?
If they are two separate trades, they should be reported separately.
That's just - you guessed it - botox!
Why?
Because mileage rates just do not apply to the self-employed for VAT purposes
For direct tax purposes, he can decide what to do on a per vehicle basis, but only has on 10K mile limit for both businesses.
And, here is the link to a thread about a sole trader using a ppm calculation for motoring costs: https://www.accountingweb.co.uk/any-answers/can-you-reclaim-vat-on-van-p...