Car Travel & Parking meter HRMCTreatment

[DaveB]

In order to reclaim the VAT element you must know have petrol receipts showing vat of at least the total reclaimed. Some EC thing.

Yet another reason to get on the FRS.

[ASB]

Record the milage you do for each work related trip and keep your receipts every time you fill up with fuel.

The VAT man allows a standard rate of 40p per mile for the first 10,000 miles in a year and 25p per mile there after (IIRC).

VAT on that works out at 2p per mile at the higher rate and 1p at the lower. You should record this along with your milage claims so that you can claim back the VAT.

It's far, far easier to sign up to the Flate Rate Scheme. Then all you need do is record your mileage and keep your receipts as supporting evidence. No worries about VAT receipts etc. and it saves you money. This is assuming your are running your own Ltd and not in a composite/brolly/dodgy offshore scheme.

In order to reclaim the VAT element you must know have petrol receipts showing vat of at least the total reclaimed. Some EC thing.

[DaveB]

I dont want to be a pest, but how do I account for petrol/ car travel costs ?


css_jay99

Record the milage you do for each work related trip and keep your receipts every time you fill up with fuel.

The VAT man allows a standard rate of 40p per mile for the first 10,000 miles in a year and 25p per mile there after (IIRC).

VAT on that works out at 2p per mile at the higher rate and 1p at the lower. You should record this along with your milage claims so that you can claim back the VAT.

It's far, far easier to sign up to the Flate Rate Scheme. Then all you need do is record your mileage and keep your receipts as supporting evidence. No worries about VAT receipts etc. and it saves you money. This is assuming your are running your own Ltd and not in a composite/brolly/dodgy offshore scheme.

[css_jay99]

I dont want to be a pest, but how do I account for petrol/ car travel costs ?


css_jay99

[DaveB]

Get on the VAT Flate Rate Scheme and you dont need to worry about recording the VAT element etc. Just keep track of the milage. As long as your VAT'able expenses are minimal you will be better off over all. It saves me around £400 a month.

[oxtailsoup]

I didn't realise that you needed the petrol receipt to claim the 2p vat back on the mileage. I don't keep any petrol receipts, I just record every trip in a travel book.

[paulb567]

Thanks Guy,

I might pobably ignore the parking meter for now and bill the car travel. though I dont have receipts for this, but I guess if the worst comes I might have to get my bank for proof..


cheers

css_jay99

As said before, you don't need petrol receipts for claiming mileage unless you wish to reclaim the VAT, but for the small amount of mileage you are doing it would be more hassle than its worth. Just keep a record of the journeys you make.

[css_jay99]

Thanks Guy,

I might pobably ignore the parking meter for now and bill the car travel. though I dont have receipts for this, but I guess if the worst comes I might have to get my bank for proof..


cheers

css_jay99

[ASB]

Does this mean that I cant claim without receipts. I have only managed to keep 3 out of about almost 60

cheers

css_jay99

No it doesn't. You can in fact claim anything you want without a receipt. It's just that there is a risk involved. What you need to be able to do is to substantiiate the expenditure to the satisfaction of an inspector - should they investigate you. In your position I would simply be inclined to annotate the mileage claim "+ 3 quid parking" or similar and claim it.

There is a risk that an inspector may disallow it, but if everything else is reasonably OK in the compliance review it is fairly unlikely.

[MrsGoof]

Does this mean that I cant claim without receipts. I have only managed to keep 3 out of about almost 60

cheers

css_jay99

If HMRC come knocking then they will want the receipts, although there are some Brollies out there that imply that you do not need them

It's up to you whether or not you claim without them, but for the furure I'd advice that you keep them. Just get into the habbit of putting them in an envelope when you pick up the car.

[css_jay99]

IANA

If the parking meters give you a receipt then keep it. Just stuff them in an envelope (maybe 1 envelope per month), then claiming is simple.


I'm bored now

Does this mean that I cant claim without receipts. I have only managed to keep 3 out of about almost 60

cheers

css_jay99

[paulb567]

3) How do I sort out dividends

Do a search of the forums, this question comes up all the time.

[MrsGoof]

IANA

You can claim your mileage at sandard HMRC rates without a receipt, you just need to keep a record of your journeys.

If you wanted to claim the VAT back on the petrol used for raveling in the car then you will need some petrol receipts, but based upon how few miles you do wouldn't bother.

If the parking meters give you a receipt then keep it. Just stuff them in an envelope (maybe 1 envelope per month), then claiming is simple.

I'm bored now

[css_jay99]

Hi all,

I am aware the questions below are to be directed at accountants but I don’t have one as of yet. However I have learnt a lot on this forum so no wise cracks about me without an accountant!

Car Travel & Parking meters
I normally drive to the station every money to go to the client site, Round trip is about 3 miles daily. I don’t keep receipts when I buy petrol.

I also sometimes use the parking meters @£3 a day which there is mostly no poof of since I tend to chuck away the receipt

My questions are :-
1) Can I claim for these things even without the receipts ?
2) what is the accounting /Inland revenue way of accounting or recording these items?

3) How do I sort out dividends


Cheers

Css_jay99