I have a question, I need to reimburse myself for fuel, I have a privately owned car which I have used for business travel over the last 6 months, its just shy of 2k miles so not a massive amount but also not nothing.
In the past when doing this I would create a bill in xero payable to me, with two lines on it, one for the vatable component of the 45p and one for the non vatable component using the advisory fuel rates from HMRC. This means that I personally get the 45p per mile and the company correctly (or so I thought) records the VAT paid for VAT returns.
Its been a while since I did this because I have not been traveling much, Ive just been on to check the advisory fuel rates and spotted this new text at the top of the page:
So have I been doing it wrong? Its not a company car so is the process different?
In the past when doing this I would create a bill in xero payable to me, with two lines on it, one for the vatable component of the 45p and one for the non vatable component using the advisory fuel rates from HMRC. This means that I personally get the 45p per mile and the company correctly (or so I thought) records the VAT paid for VAT returns.
Its been a while since I did this because I have not been traveling much, Ive just been on to check the advisory fuel rates and spotted this new text at the top of the page:
When you can use the mileage rates
These rates only apply to employees using a company car.
Use the rates when you either:
You must not use these rates in any other circumstances.
These rates only apply to employees using a company car.
Use the rates when you either:
- reimburse employees for business travel in their company cars
- need employees to repay the cost of fuel used for private travel
You must not use these rates in any other circumstances.
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