I probably have never come across it in practice as to use the 45p mileage claim you need to be below the VAT threshold and therefore will be unlikely to be VAT registered unless of course you choose to voluntary register if you supply something like zero rated goods.
MarkS
Hi Mark,
of course, thats peculiar to the self employed.
limited companies can quite merrily earn many times the VAT threshhold but employees and directors can still claim mileage regardless as to the business turnover.
Yet another reason that I'm incorporated.
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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.
Thanks. Another question please! I haven't got any income yet. But I know the turnover will be over the threshold at the end of year. Can I claim the 45p until my turnover over? Or I can not claim it never ever?
The current VAT reg threshold is £77k so provided your turnover is less than 45p per mile you can use this option to recharge the company for business mileage in a personal car.
thanks, Marks!
Sorry, still not very sure.
My limited company's turnover is over 77000 a year. So the company can't apply the 45p, but as an director, can I claim 45p from the company?
BTW, the HMRC didn't mentioned about the turnover threshold when they intrduoce the mileage allowance. Could you tell me where can I find the threshold, please?
people in this thread have invariably been talking about the self employed largely due to the debate with Vince.
For limited companies there is no limitation. Doesn't matter what you make, as either an employee or a director (who is still an employee) you will still be able to claim mileage (45p/25p).
Conversely the self employed are limited in the availability of this option which is restricted per Marks comments.
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.
