I have read loads of topics on the forum and on the HMRC website on VAT and Mileage expenses. It appears a complex minefield which totally mystifies me.
I am a sole trader presently. I do not earn enough to pay VAT but has started a new online printing business which require me to declare VAT. So I am now VAT Registered.
Over the last 5 years (preVAT#) when I recorded my ‘Business Mileage’ expenditure I entered them as a new Purchase to the supplier ‘Expenses: Approved Mileage’ (category: Travelling) paid from ‘Proprietor Drawing’ by Bank Transfer.
Now that I am VAT Registered do I need to add to the purchase expense VAT @ 20% or not?!
A simple ‘yes or no’ would be a good answer.
Over the last 2 VAT quarters (which I have already reported since registration) I have been putting ‘No VAT’
I had looked at that HMRC topic last night and couldn’t understand it. I simply need to know whether I need to choose to add the VAT at 20% when adding these mileage expenses. Whether I claim it back or not. At the moment I am putting “noVAT”
It is my own private car which I am using for my business mileage and I reclaim 45p per mile.
Sorry I missed that second link. Even looking at it quickly I can see that I need to add the VAT to the expense and then claim back the fuel portion. For me - a non numbers person it will be a bit of a task, but I can clearly see that I need to add the VAT on future mileage claims.
I can go back in my purchases to the beginning of October and amend those expenses to include VAT but have lost out on the previous 2 quarters as those are locked as they have already been put through to the VAT office. Hey ho.
Thank you again for your very helpful link.
Wishing you well over the festive period as Christmas speeds toward us at an alarming rate!
