Sole Trader & Authorised Mileage Rate

Sole Trader & Authorised Mileage Rate

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Sole trader client initially claimed motor expenses in accounts based on the mileage log using the Inland Revenue AMR rate as turnover < VAT threshold. However, turnover now increased to > VAT threshold, but client continues to use the same vehicle for business purposes. I am right that the authorised mileage rate of 40p per mile can continue to form the motor expenses claim in the accounts even though turnover is now in excess of the VAT threshold as he still uses the same vehicle. On changing the vehicle the actual motor expenses will, of course, be claimed.
Jason Sharp

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By Abacjm
14th Jan 2005 03:32

AMR Claim VAT
Your interpretation is correct, but the Vat element on 40p/mile is 7/47 = approx .05p and not 10p as suggested.

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