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Post Info TOPIC: VAT Query
alfie


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VAT Query
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Many of you may know the answer to this.

Have not had any clients that are vat registered as yet.

However is has occured to me that if a client is on the 40p @ mile with his motor expenses, not receipts.

How does the vat from the petrol etc get recorded in order to show on his vat return?

Thanks



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gillyfleur


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They have to make sure they get a VAT receipt for all their fuel purchased to be able to prove they've bought sufficient fuel to justify the mileage and then there is a formula which you can find on the HMRC website for the amount of fuel content in the 40p (which is now 45p in this new tax year). For a 2 litre diesel it was 11p of the mileage that related to fuel content - the balance being to contribute to depreciation, servicing, tyres etc

So, if your total mileage is 1000 miles at 45p = £450 expenses. Of this 1000 x 11p is for fuel = £110 - this then includes VAT at 20% so divide £110 by 6 = £18.33 vat claimable - but you have to have the receiptsl



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alfie


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Posts: 45
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Thanks thats great

So with non vat all the business mileage is claimed as an expense at 40p mile or using the receipts system.

I tend to tell clients to keep the receipts anyway.



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