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Rakhi Vasavada
Rakhi Vasavada, Financial Advisor
Category: Finance
Satisfied Customers: 4546
Experience:  Attorney and Financial Expert. Have specialization in Financial Laws.Practice experience of over 13 years
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I am Locum Optician who has a private limited company. i am

Customer Question

i am Locum Optician who has a private limited company. i am not VAT registered but i wanted to know how it is possible to claim expenses for the business such as travel, fuel, parking, lunch that i face day to day working
Submitted: 2 years ago.
Category: Finance
Expert:  Rakhi Vasavada replied 2 years ago.
Dear Friend, Hello and welcome. Thank you for providing an opportunity to assist you. These are direct expenses for your business and therefore legitimate to claim them on your taxes. You will be able to claim travel, lunch, parking expenses, etc at ACTUAL. You will just have to preserve the receipts. So long as fuel is concerned, there are two methods depending upon your circumstances. I will present you with both the methods. Full cost method – If you use the full cost method and claim capital allowances on the vehicle then it effectively belongs to the company. You, as an employee, have use of the company vehicle for business journeys. Unlike a sole trader who can make a deduction for any personal mileage, any private use of the company vehicle by an employee is classed as a “benefit in kind” and is subject to tax through your personal tax return. In short – if you use the full cost method then personal mileage needs to go on your personal tax return (and also P11D) at the end of the year. You can claim Fuel, Repairs, Insurance and Tax, and Cost of Vehicle via tax capital allowances. You CANNOT claim private use element and fines and penalties that you pay. Another method would be Mileage method – Using the mileage method, the vehicle remains privately owned and you as an employee can claim a mileage allowance for any business travel. This is the best method if you are making a combination of business and personal journeys. Again this relies on keeping good mileage records throughout the year. You can claim Business mileage allowance at HMRC rate – for cars and vans (in 2015-16 this is 45p per mile up to 10,000 miles and then 25p per mile) and Passengers for business journeys at HMRC approved rate – (in 2015-16 this is 5p per mile) Extra journey costs such as toll charges, congestion charge and parking HOWEVER, since you are NOT VAT Registered, you will NOT be able to reclaim VAT Component. I am sure this would help. I wish you good luck.You may please leave a positive rating if this helps as this is the only way we are compensated for assisting you. Alternatively, you may revert back with a reply if you need further assistance or if I have missed out on any aspect of your question.Warm Regards,
Customer: replied 2 years ago.

ok but what is the process of being able to claim these