Sorry I'm sure this has been asked many times before but I tried a quick search and couldn't see anything.
Does registering for VAT flat rate scheme affect an individual being able to claim the mileage allowance not sure if I have read it somewhere, if they are under the threshold?
Thanks
Stuart
Hi Stuart,
I'm not aware of the Flat Rate Scheme having any bearing but the general rule is that you can claim the mileage allowance on a vehicle so long as it was bought/introduced into the business when the turnover was under the VAT threshold (irrespective of whether the business is vat registered or not). Once either the mileage relief or the actual costs method is used you cannot switch. Of course if you were wanting to claim VAT on the mileage you wouldn't be able to do that under FRS.
You know I just don't get this VAT threshold/mileage thing? Why is there some restriction on who can claim the 45p mile? Surely if you use your car for a business mile, you should just get 45p? What's the point of the rule? I have never seen anyone apply it.
Absolutely agree it is a total nonsensical rule and prior to the increase to 45p the rate had bee 40p for just about forever irrespective of the increase in fuel prices!