VAT on approved mileage allowance

VAT on approved mileage allowance

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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

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By stephenkendrew
10th Aug 2008 13:28

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: -

http://www.hmrc.gov.uk/cars/advisory_fuel_archive.htm

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Euan's picture
By Euan MacLennan
10th Aug 2008 10:36

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.

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By User deleted
09th Aug 2008 22:17

Yes, but...
...only if they have VAT invoices for fuel purchases that show VAT sufficient to cover the amount being claimed.

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By ukaccounts
10th Sep 2013 16:35

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?

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By ukaccounts
10th Sep 2013 16:43

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

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By ukaccounts
10th Sep 2013 17:00

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

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