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  • FIRST POST
    • beastman
    • By beastman 17th Nov 08, 12:08 PM
    • 35Posts
    • 2Thanks
    beastman
    Claiming back fuel costs
    • #1
    • 17th Nov 08, 12:08 PM
    Claiming back fuel costs 17th Nov 08 at 12:08 PM
    I hope someone can confirm a few tricky questions for me please?

    I have started a new self employed sales job which is on commision only. I also currently work part-time employed and pay tax in the normal PAYE earn way. The part time sales job involves selling bespoke jewellery at peoples homes and so the only main expense I have is running the car. The jewellery is VAT chargable of course but as I don't buy the jewellery myself from the company and sell it on (it is sold directly from the company I work for to the customer) then I dont need to claim the VAT back on that. I know I could claim as tax deducatable for a few legitimate expenses like work clothes and the cost of my broadband for business purposes but the car/fuel costs is the main concern.
    As I will be hitting a sales turnover of over £67K per year (my commison earnings will less than 10K) I understand my only option is to be VAT registered and I believe this then means I cannot claim for the miles I do and claim via the 40ppm/ 25ppm option. Is that correct as I would prefer to just claim the miles rather than having to keep petrol receipts. I have accurate records of customer visits and mileage that can be proved if needs be.
    So can someone confirm then that I have to then keep every petrol receipt and in addition claim back other car expenses such as tyres/servicing/insurane. I guess I use my car 80% of the time for the sales job and to calculate this proporation whilst having to keep receipts is a pain.

    Working out wether or not I should be a sole trader or a limited company is another thing!

    thanks alot
Page 1
    • sandraroffey
    • By sandraroffey 17th Nov 08, 12:30 PM
    • 1,348 Posts
    • 1,518 Thanks
    sandraroffey
    • #2
    • 17th Nov 08, 12:30 PM
    • #2
    • 17th Nov 08, 12:30 PM
    dont know if this is going to make sense. this is what we did but the law on vat etc may have changed since then.

    ok we registered for vat AND we also paid a certain amount per month in with the VAT (cant remember what it was called now!! but a vat leaflet or online will tell you; possibly called a scale charge??).

    what this meant was that we could claim back all vat paid out on fuel, without having prove whether it was business or personal use. it was well worth our while.

    at the time we were doing it, it was something like £40 per quarter per car.
  • fengirl
    • #3
    • 17th Nov 08, 12:58 PM
    • #3
    • 17th Nov 08, 12:58 PM
    Forgive me if I have misunderstood but you do not sell the jewellry direct, you only act as an agent. Therefore the over £67k turnover is not going through your hands. Your only trading income is the commission you receive.
    • beastman
    • By beastman 17th Nov 08, 1:38 PM
    • 35 Posts
    • 2 Thanks
    beastman
    • #4
    • 17th Nov 08, 1:38 PM
    • #4
    • 17th Nov 08, 1:38 PM
    Forgive me if I have misunderstood but you do not sell the jewellry direct, you only act as an agent. Therefore the over £67k turnover is not going through your hands. Your only trading income is the commission you receive.
    Originally posted by fengirl
    Aha thats sounds like a might pertinent point that I never thought of!
    So that kind of answers my question as my turnover will less than 10K (unfortunately) so that means I'm ok just claiming the miles and not messing about with the receipts! Hope thats right.
  • fengirl
    • #5
    • 17th Nov 08, 3:04 PM
    • #5
    • 17th Nov 08, 3:04 PM
    Thats right.
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