VAT on Motor Expenses

VAT on Motor Expenses

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Client is claiming 40p per mile motoring expenses. He understands that VAT can be claimed at 7/47 of 12p per mile for the fuel (using Revenue Advisory Fuel Rates). But there have been heavy repair costs and these are not included in the advisory fuel rates. He wants to know whether he can claim VAT on his repairs bills (as an adjustment to the VAT calculations), or whether there is a breakdown of the 40p so that he can claim VAT on the repair element. Helplines are not helpful (sic). Is there anyone out there who is?
Ian Dalzell

Replies (5)

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By User deleted
19th Sep 2005 21:00

Not a chance!
And I hope that the VAT registration was voluntary, or that a vehicle from before VAT registration is being "used out", otherwise he'll have a lot of explaining to do to the Revenue (as was)!

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By AnonymousUser
20th Sep 2005 08:08

Clarification D?
Hi, I was interested in your response as (ignoring the repair issue) the treatment described by the poster is one used commonly. Could you give the thoughts behind your concerns please?

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By Briar
20th Sep 2005 14:29

Clarification
Client is VAT registered and self employed but under the threshold (though he sometimes goes above it - hence VAT registration continuing sine die)

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By AnonymousUser
20th Sep 2005 16:27

Thanks Graham ..
with you (and D) now. My clients are typically OMB Limited Co's and I hadn't quite switched on to the Self-employed aspect.

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By User deleted
20th Sep 2005 12:28

Perhaps...
...D is referring to the fact that self-employed businesses over the VAT threshold cannot use the mileage rate, but I don't think the status was mentioned by the questioner.

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