VAT on part business part private usage

Hi Mark,
Recently purchased Solar and enjoy its functionality, flexibility and provision for correcting mistakes easily!!
My question is - I am recently VAT registered as a self employed trader. My motor expenses are apportioned say 50% business use, 50% private. When reclaiming VAT do I claim all of it or only the 50% that was used for business purposes?
Would appreciate some help.
Thanks
Paul

Posted by Paul Mihailovits on Jun 17, 2009 4:44 PM BST

Hi Paul,

Thanks for the positive feedback - we're glad you like our software!

You cannot reclaim VAT for the personal part of your vechicle costs. You should enter two separate transactions:
1. An expense, allocated to the 'Motor Expenses' account.
2. An non-business payment as described here:
http://www.solaraccounts.co.uk/help/how-to-record-non-business-payments.php

I hope this helps - please let me know if you need more information.

Cheers,

Posted by Mark McLaren (Solar Accounts) on Jun 17, 2009 6:21 PM BST