I have a client with two directors/employees who claim 40p per mile for their business miles. Can the company also claim VAT on these payments?
Diane Ackroyd
Replies (6)
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VAT on mileage
There are several different rates depending on engine size, petrol or diesel etc, and these rates have changed several times over the last few years. See here for details of the different rates at the moment: -
http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm
And here for earlier rates: -
Yes, but ...
... only on the authorised fuel rate at 7/47ths of (say) 15p a mile for a petrol car between 1400 and 2000cc, not on the total 40/25p which covers all sorts of non-vatable items such as insurance, road fund tax and insurance.
Yes, but...
...only if they have VAT invoices for fuel purchases that show VAT sufficient to cover the amount being claimed.
vatable element on mileage 47pence
I have a staff member who claims 47p per business mileage. When entered on accounting software, how much can I put under tax code T1? 7 pence? and the rest 40pence under tax code T9?
vatable element on mileage 47p
hi, you can claim 7/47th per £1 on the mileage based on 40p. ie 17.5 for new rate 47p
VATABLE ELEMENT on 47p
hmrc has suggested to use advisory fuel rates, for lowest size engine and petrol, they recommend 15p per mile, and this is vatable. under T1, rest 32p under T9