Retrospective VAT Claim on 45p mileage costs

Retrospective VAT Claim on 45p mileage costs

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A client has just provided the mileage details for the Accounts for the year to Dec 31st 2015.

We can work out the allowable expense based on the 45p/25p per mile but is it too late to also reclaim the VAT on the mileage? (They have plenty of petrol receipts to use if HMRC enquire)

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By essex accountant
06th May 2016 13:52

I have a client who asks us each year to calculate VAT on his mileage claim and then he reclaims it later. Providing that the claim is correctly calculated, there is no reason why it can't be claimed in a later quarter.

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By bumpdinkwhallop
09th May 2016 15:53

You can claim back up to 4 years worth of unclaimed VAT

Its based on the published mileage rates relevant for the month in question.

For example if its Dec 2015 and a 2 litre car and the HMRC mikeage rate is say £0.12 you can claim 1/6 of £0.12 for every mile done in Dec 2015. Then the same for every other month. The calculation needs done seperately for each month as the mileage rates change

If by doing the above calculation each month results in £400 in vat to claim, you need at least £400 of vat on the receipts you hold.

You dont for instance just claim the vat thats on the receipts you have. It must be the vat element only on the published mileage rate multiplied by the miles done for that particular month

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By psimonparsons
09th May 2016 17:12

Just be sure you claim it on the relevant mileage rate for the business miles undertaken and not the 45p/25p which does not relate to VAT but reimbursement for use of private car for business mileage.

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By Phi
11th May 2016 09:14

Provided you are within the timelimits to reclaim input vat, there is no problem

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By Phi
11th May 2016 09:14

Provided you are within the timelimits to reclaim input vat, there is no problem

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