Confirmation

[Mustang]

Just wanted to confirm the issue of VAT on mileage claims.

Currently doing following: -

* Record business mileage
* Monthly claim at appropriate rate (40p <10K, 25p > 10K)
* Collecting VAT receipts for petrol when I and storing these in my files.

When I record the mileage claim on my books, can I account for VAT on it even though it's not a direct expense claim against the receipts?


Thanks for any help!

[malvolio]

Opinions vary, so ask an accountant, but a fair chunk of mileage cost is duty that is not VATable. SJD have advised me to claim 1p per mile as VAT - if you do the sums it should be around 1.4p - and use that as the baseline. Since the drop from 40 to 25 reflects "wear and tear" and not petrol consumed, it still applies once you're over the 10k mark. You can't claim VAT on petrol bought as well as mileage claimed of course.

[nobody here but us chicke]

I had the conversation with the vat man some time ago. Somewhere buried in the IR web site is a breakdown of the milage rates and there is a fuel element figure. You can claim back the vat on that (and go back two years I think they said)

I cant remember the exect details but it did get posted on here or possibly the old board. I think Malvolio's figure is about right.

[Robot]

This should help

www.hmrc.gov.uk/cars/advisory_fuel_current.htm