45p per mile, VAT on VAT 45p per mile, VAT on VAT - Page 2
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  1. #11

    Still gathering requirements...

    Join Date
    Dec 2008


    The client can claim back the VAT you charged on the mileage

    You can claim the VAT proportion of the mileage rate (unless your on the Flat Rate, where it WAS supposed to be recovered in the % VAT you retain, likely now a lot less....)

  2. #12

    Should post faster

    Join Date
    Nov 2016


    I've always added my expenses to my invoice and then charged VAT on top of the lot.

    The client claims back this VAT, I claim back the VAT on the actual expenses at whatever rate applies.

    And if you've done over 10000 miles in a tax year you'll only be paying yourself (the employee) 25ppm, but the client doesn't need to know this.

  3. #13

    Contractor Among Contractors

    Join Date
    Mar 2007


    Quote Originally Posted by Eirikur View Post
    I used to claim 80% of 45p from the agency in my invoice and add 20% VAT
    Then you'd only be reimbursed 96% in total?

  4. #14

    Nervous Newbie

    Join Date
    Jul 2017

    Default Thanks....

    Quote Originally Posted by Waldorf View Post
    Yes, that is correct - simply add VAT to the total expenses you are charging. There are two methods, either add VAT to the total amount OR strip out the VAT and then add the VAT. Either is accepted by HMRC, the first may not be accepted by the client!

    That is what the 45p is supposed to cover.
    Thanks for the info on VAT: I was looking to see whether it included a VAT element because I couldn't remember....

    PS: I noted the quote from Cicero at the bottom of your post "The budget should be balanced, the treasury should be refilled etc...." I have huge sympathy for the quote, but Cicero never actually said it, not even in Latin; it's often been quoted by Americans but it actually comes from an American author...

  5. #15

    Contractor Among Contractors

    Join Date
    Sep 2009
    Tunbridge Wells


    As others have sort of said, your costs, and what you charge things at, are two separate things.

    Yes it may be that the actual fuel costs you 17p, and 2-3p of that is VAT, but that's irrelevant to what you've agreed to charge your client.

    Same way imagine you bought a bit of computer kit for £100+VAT = £120. If you then sell it to the client for £200+VAT = £240, you're not adding VAT on VAT, you're just buying it for £100, selling it for £200, and there's VAT on both transactions. It being fuel isn't really any different other than there is the set amount HMRC let you claim from your company irrespective of actual costs.

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