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Mileage claim - self employed courier driver

Mileage claim - self employed courier driver

I have a client who is a self employed courier.

His turnover is approx £60,000 pa. He is voluntarily registered for VAT.

He currently claims in his accounts for all motor expenses - van lease / fuel / insurance etc.

Can the alternative method be used ?  45p / 25p per mile. Does this apply to vans?

He does approx 70,000 to 80,000 miles per year, so the claim would be huge, and more tax efficient than claiming the actual expenses.

Does the fact that he is VAT registered prevent him from using this method ? (even though his turnover is below the registration threshold)

Is VAT reclaimable when using the mileage method rather than actual expenses ?

Thanks for help


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14th May 2012 14:54

Change of Vehicle needed

Whilst claiming mileage allowances may be beneficial, you can only start to use this option if there is a change of vehicle, or if you have not yet submitted any claim to HMRC under the actual basis.


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