Reimbursing Directors for Fuel Expenses

Fireraiser

I've just taken on a new Ltd Co client. One of the directors uses his own car for business purposes, claiming expenses at AMAP rates. These are reimbursed via debits to the DLA. Is this acceptable or should he be reimbursed via payroll (he draws a salary) and, as no dispensation has been arranged, this be reported on via a P11D?

Thanks.

Monsoon

That's fine AFAIK. No P11D as he is reimbursed at AMAP rates.

Fireraiser

Thank you. I should have googled this first http://www.hmrc.gov.uk/manuals/eimanual/EIM30058.htm No dispensation required for AMAPs

reader

Fireraiser wrote: »

These are reimbursed via debits to the DLA?

I would credit the DLA and debit motor expenses for the AMA payment.

If the company is VAT registered the company can recover input tax on business mileage.