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Could someone help me with a VAT query.
I have a client who has a delivery van. All petrol receipts are put through the business, and VAT reclaimed. The driver of this van is self-employed, and lives 30 miles away from the workplace. The director has allowed this driver to drive this van to and from work, because he sometimes carries out deliveries on the way to work, and ALWAYS carries out a variety of deliveries on the way home.
The driver has been told that under no circumstances is he allowed to use the van for private use because he is not insured. He has his own car, so assures us that he does not do so.
My question is this. On the days where no deliveries are carrried out on the way to work, the driver has been told by the Director of the company, that he must make note of his mileage, because he will not pay for his petrol to work. How do I account for this? If I subtract his mileage using the HMRC travel mileage allowances of 45p/mile, the poor guy will end up earning nothing (he's on an hourly rate). How do I apportion the VAT? Is it a case of working how many miles the van's tank uses, and work out a price per mile of the specific vehicle?
I would be really grateful for help on this.
Kind Regards
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