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VAT on Mileage allowances


I am currently having an arguement with a collegue over how to claim the vat back on mileage paid at the prescribed HMRC rates.

I would say that it is claimed based on the advisory fuel rates, however my collegue claims that it should be at the fixed rate of 0.01769.

If any one could help to solve this I would be very grateful.



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02nd Jun 2010 13:01

You are right

"You can claim as input tax 7/47 (17.5/117.5) of the advisory fuel rate published by HMRC. For a petrol car under 1400cc, the rate is currently 12p, Thus if the total mileage claim is for 2000 miles using a petrol car, vat will be

2000*0.12*7/47 = £35.74

So I can claim 7/47 of my 12ps per mile?

You need sufficient VAT invoices to cover the VAT claimed

By the way , where your colleague is coming up with this fraction of 0.01769?

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By djbrown
09th Jun 2010 10:42

SImply a short-cut..

2000 miles times 0.01769 = £35.38.

The odd fraction is simply a short-cut which is pretty close.


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