Reimbursing Directors for Fuel Expenses

Fireraiser
Fireraiser Registered Posts: 91 Regular contributor ⭐
edited June 18 in AAT member discussion
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.

Comments

  • Monsoon
    Monsoon Registered Posts: 4,020 Beyond epic contributor 🧙‍♂️
    That's fine AFAIK. No P11D as he is reimbursed at AMAP rates.
  • Fireraiser
    Fireraiser Registered Posts: 91 Regular contributor ⭐
    Thank you. I should have googled this first http://www.hmrc.gov.uk/manuals/eimanual/EIM30058.htm No dispensation required for AMAPs :)
  • reader
    reader Registered Posts: 1,029 Beyond epic contributor 🧙‍♂️
    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.

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