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VAT on lower mileage rate

Having searched both AWEB and HMRC I am at a loss to find out the allowable portion of the mileage rates for VAT.

If anyone can either enlighten me or point me to the relevant HMRC table I would be obliged and thankful!

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You need to look at the advisory rates...

... for the engine size/fuel type of the vehicle concerned and take one-sixth of that figure.

The advisory fuel rates are HERE.

Incidentally, the VAT amount on the 45p rate is the same as this as well.

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05th Feb 2013 13:46

George

Many thanks

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05th Feb 2013 14:42

VAT

If you are self employed and VAT registered, you cannot claim VAT

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Now...

HUGH W DUNLOP wrote:

If you are self employed and VAT registered, you cannot claim VAT

... that's an interesting statement Hugh.

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05th Feb 2013 15:01

Perhaps, Hugh meant ...

... that as self-employed people below the VAT registration threshold are allowed to use the fuel advisory rates for employees as a concession, a self-employed person over the VAT registration threshold should not be claiming the fuel advisory rates and hence, any VAT that may be included in them.

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05th Feb 2013 15:28

but it is still possible!

The actual test is if your turnover was below the VAT threshold when you purchased the car. So once you've used the mileage rate, you can continue to use it, even if you become VAT registered, until you change cars: -

http://www.hmrc.gov.uk/helpsheets/hs222.pdf#page=3

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05th Feb 2013 18:32

VAT

What I did mean was that if the turnover is below the level at which VAT registration is required, whether or not you have registered, you can claim mileage. Once you are over the threshold, you cannot claim VAT, or motor expenses, apart from interest on a purchase loan.

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