Hi all,
Im new to contracting world and Im doing my bookkeeping on my LTD co.
Im trying to work out VAT on mileage. I have two options i think..
Option 1)Basically do i claim VAT on all my fuel receipts?
i.e Mileage 600miles *0.45 = £270 total expense. £60 fuel. VAT £10 I claim £10 VAT.
or
Option 2)do i claim VAT on my mileage?? This is the formula given by my accountant..
i.e. 600miles * 0.45 = £270 Total expense * 0.25/6 and i get £11.25 VAT
Which one is correct?? My accountant is telling me option 2. because i do not drive a van. which is weird?? i didnt know it makes a different. but they said it can cause all sorts of issues if Taxman sees option 1 on a LTD co.
wots everyones opinions?? im thinking option2
Im new to contracting world and Im doing my bookkeeping on my LTD co.
Im trying to work out VAT on mileage. I have two options i think..
Option 1)Basically do i claim VAT on all my fuel receipts?
i.e Mileage 600miles *0.45 = £270 total expense. £60 fuel. VAT £10 I claim £10 VAT.
or
Option 2)do i claim VAT on my mileage?? This is the formula given by my accountant..
i.e. 600miles * 0.45 = £270 Total expense * 0.25/6 and i get £11.25 VAT
Which one is correct?? My accountant is telling me option 2. because i do not drive a van. which is weird?? i didnt know it makes a different. but they said it can cause all sorts of issues if Taxman sees option 1 on a LTD co.
wots everyones opinions?? im thinking option2
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