VAT input claim on mileage

VAT input claim on mileage

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I have been told the following and I believe it to be true.

Sole traders and partnerships are allowed to reclaim input VAT on the advisory fuel rate if they are using the 45p mileage claim rather than actual motoring costs, but only if they registered for VAT voluntarily. It seems that this was some sort of concession that came in when the mileage route for sole traders was first introduced.

The problem is that I cannot find any reference to this 'concession' anywhere but I am confident that someone out there must know of this and can point me to some solid evidence.

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By martinscutt
11th Sep 2014 16:28

Kind off

Can only claim the 'fuel' element not the full 45p. so look at the tables for appropriate rates http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm the bit at the bottom alludes to VAT, you wont find it in the legislation, its just a HMRC thing.

 

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By andy.partridge
11th Sep 2014 21:36

Just to add
The flat rate for mileage is available to all sole traders under the simplified expenses method irrespective of turnover or VAT registration.

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