Flat Rate Fuel VAT
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Discussion

Pickled Piper

Original Poster:

6,452 posts

265 months

Sunday 3rd June 2007
quotequote all
Hi can somebody explain how the above works please? I have my own Ltd Company and pay myself a mileage allowance for use of my private car on business. During my last VAT Inspection the man from the ministry suggested that it may be advantageous for me to avail myself of this scheme.

Any guidance appreciated.

pp

Eric Mc

125,768 posts

295 months

Sunday 3rd June 2007
quotequote all
Up until a while ago, the normal procedure was that VAT could be claimed on 1/2 the amount being claimed under the scheme -

if you were claiming mileage at 40p per mile, you could claim back the VAT content of 20p per mile i.e 20p x 17.5/117.5 = £.03p. As mleage claims are based on expense sheets handed in by employees/directors (or, at least, should be) it was not deemed necessary that the claimant needed to attach any sort of original bills/invoices or vouchers with the claim.

However, a ruling against the Dutch (who operated a similar scheme) means that at least some fuel bills/receipts should be attached to the expense claim form in order to validate the Input VAT reclaim on the petrol element of the mileage claim.

Pickled Piper

Original Poster:

6,452 posts

265 months

Sunday 3rd June 2007
quotequote all
Many thanks Eric.

pp

Leftie

11,838 posts

265 months

Thursday 7th June 2007
quotequote all
Eric Mc said:
Up until a while ago, the normal procedure was that VAT could be claimed on 1/2 the amount being claimed under the scheme -

if you were claiming mileage at 40p per mile, you could claim back the VAT content of 20p per mile i.e 20p x 17.5/117.5 = £.03p. As mleage claims are based on expense sheets handed in by employees/directors (or, at least, should be) it was not deemed necessary that the claimant needed to attach any sort of original bills/invoices or vouchers with the claim.

However, a ruling against the Dutch (who operated a similar scheme) means that at least some fuel bills/receipts should be attached to the expense claim form in order to validate the Input VAT reclaim on the petrol element of the mileage claim.
Eric I thought the fuel element was only 9p/40p? I have been reclaiming the VAT at 9p a mile since January when I got rid of the company car.