Vat reclaim on mileage

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So as you may all be aware that with the new FRV changes many of the contractors have either gone onto standard vat or have become non vat registered. The problem that arises here is reclaiming vat on mileage; people currently in my practice are claiming 2.5p per mile as the vat element, however I am under the impression that we would need to find out the clients engine size and use the advisory fuel rates. Can anyone clarify if you're indeed allowed to use a flat rate for mileage vat reclaim? Also what would be the procedure once the client exceeds 10,000 miles in one year? Still stick with advisory fuel rate or is this reduced further?

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RLI
By lionofludesch
05th Aug 2017 08:39

FRV? Flat Rate VAT?

Can't believe that an acronym now has an initial.

Yeah, you should be using advisory fuel rates or working it out yourself from scratch. If it's over 10,000 miles a year it's still the same.

But you're going to need a lot of miles to mount up to a significant error. It's buttons.

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