Vat

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MVT
MVT Registered Posts: 41 Regular contributor ⭐
One of my Clients is a plumber and he is VAT registered, I am just preparing the VAT return for him and noticed he hasn't put through any fuel receipts for his van which he uses solely for business use. (he has a car for private)

Presumably we can reclaim the VAT on the basis that he uses the van to travel to his clients and to collect his stock from shops etc, can someone clarify this for me please and if there is a requirement to log his mileage?

many thanks,

Michelle

Comments

  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
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    If the van is used solely for business use then you can reclaim VAT on all the fuel receipts as lon as he provides valid VAT receipts. You do not need to keep a log of mileage but instead claim all of the expenses in relation to the van.
  • MVT
    MVT Registered Posts: 41 Regular contributor ⭐
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    Thank you for your post Monsoon.
  • Emrhino
    Emrhino Registered Posts: 39 Regular contributor ⭐
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    Just tell him to be careful when claiming he does not use his van at all for personal use - I have been involved in number of VAT enquiries (3 from memory) where HMRC have insisted there must be an element of personal use - even if it's just 'calling for a paper on the way home'!!

    I tend to disallow 5-10% for these incidentals unless it is absolutely obvious that no personal use happens at all. Just a thought...
  • MVT
    MVT Registered Posts: 41 Regular contributor ⭐
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    Thank you for your post Emrhino, good idea I think I will just reiterate this to him and maybe suggest allowing 5% for incidentals.
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