Just wondering what is peoples experience with regard to reclaiming VAT on the fuel element of fixed mileage claims, do your clients reclaim this? Or do you advise them to?
In order to reclaim the VAT, you must first have the VAT receipt for purchase of fuel which relates to the mileage being claimed. Then you can only claim as part of the VAT - I need to search for this, as I'm not in the office and do not have the figures to hand...unless anyone else has them to hand....
just found that its in Notive 700/64 and relates to employees, so not entirely sure whether this would also relate to self employed - I have old figures so need to do a search for this year.
P
-- Edited by BackOfficeGroup on Tuesday 2nd of February 2010 09:27:08 AM
If we're talking about self employed individuals they can only claim mileage where they are below the VAT threshhold so no VAT is reclaimable on mileage for self employed.
For limited company employee's the latest rates can be found at :
As you can see the rate varies between 7p and 20p dependent upon fuel type and engine size. The rates quoted can be taken as the VAT element of the mileage rate. You need VAT receipts for all mileage paid at the advisory rates.
cheers,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Freaky, we were writing almost the same thing at the same time. (Queue music to the twilight zone).
My addendum was meant to be to Sue's note, not yours so sorry for any confusion to our regular readers out there.
The self employed angle seems pretty strange in that a VAT registered self employed bod cannot claim the VAT on the mileage where as someone doing exactly the same but using a limited company as their legal form can?
Definitely sounds like one of those issues the revenue needs to tidy up.
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
My question was not really for clarification of the rules regarding vat and fixed mileage payments; but rather a query as to whether your clients reclaim this when they qualify to do so.
As it has been highlighted in a number of cases recently, following completion of year end accounts, that no reclaim in respect of vat on mileage payments has been made.
