Mileage / Fuel / Travel Expenses for Tax Purposes

pid2004

Hi Fengirl,
Many thanks for this...this is so helpful. BTW, I have thanked you with that icon...so your numbers should be going up

theesel1994

pid2004 wrote: »

2. If you are self employed and are vat registered, then you can only have A above.

Typo surely. This is the one you CAN'T use?
Is it actually the VAT registered part that matters?
What about if you are voluntary VAT registered? ie your turnover is below £68,000 but you still register for VAT voluntary? Does this mean mean you have to use the actual expenses method? (Aren't the HMRC just using the VAT threshold figure not the VAT registration part?) Why do HMRC have to make things so complicated - other than to keep accountants in work?

pid2004

theesel1994 wrote: »

Typo surely. This is the one you CAN'T use?
Is it actually the VAT registered part that matters?
What about if you are voluntary VAT registered? ie your turnover is below £68,000 but you still register for VAT voluntary? Does this mean mean you have to use the actual expenses method? (Aren't the HMRC just using the VAT threshold figure not the VAT registration part?) Why do HMRC have to make things so complicated - other than to keep accountants in work?

hi...i dont know...need Fengirl's expert help here....xx

fengirl_2

Yes, sorry, my mistake - too many questions. If you are VAT registered you have to use the actual method. Even if you registered voluntarily for VAT. The reason is that you need to reclaim all the VAT on your motoring costs and so this has to agree with your accounts. The 40p pm does not recognise VAT.