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Sole trader - van plus multiple cars

  • Member
  • Practice Licence
  • 128 posts
  • # 113762

Hi - can anyone advise?

 

Just taking on a client who is a mobile mechanic. 

He has two vans which is solely uses for business purposes (one his main van and one a back-up).  

He has two cars which are personal which he very occassionally uses for business (for visiting me for example).

He has four other cars which he uses to take him to clients so he can collect/return their car to take for MOT.  

He is due to become VAT registered very shortly!

 

Question is how should I treat the vehicles for expenses?  As he'll be VAT registered assuming can't use mileage for any of the cars?  

 

Thanks in advance.  

 

Louise

 

 

  • 491 posts
  • # 113765

Hi Louise

Its an interesting one, that I don't know the answer to - however, I don't see why being VAT registered has anything to do with why you can't claim mileage. 

I would imagine that you'd have to be very careful to log each mileage to each registration mark on the 2 personal and the 4 other cars - the 2 vans I would imagine there are no issue with for claiming full expenses.

You'd also need to ensure that the mileage use of the 2 plus 4 cars are totalled together -  so that if and when they total 10,000 miles, that you drop to 25ppm

There are a number of internet info pages that tell you about claiming VAT........i.e. heres one

http://www.raffingers.co.uk/can-i-reclaim-vat-on-mileage-expenses/ 

I shall watch this post for people who are more in the know :-)

Carol

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