All Company business mileage in privately owned cars is repaid using the HMRC AMAP scheme.Does anybody know of any advice on the HMRC website, or have personal experience, regarding reclaiming the VAT proportion of these payments?
Tracey Latto
Have they voluntarily registered for VAT. My understanding is that you can't use AMAP if you are over the VAT threshold.Kris
Kris McCullochwww.ayrshireaccountancy.co.ukWinner - BKN Most Innovative Accountancy Firm 2012Latest Blog Post: Bookkeepers Award 2015
I have exactly the same question as Tracey so if anyone can point me in the right direction for reclaiming VAT on the AMAP scheme I would be very grateful.The director of a limited company I bookkeep for has previously claimed VAT relief on his Approved Mileage Payments for miles done in his own private car but I cannot find any guidance that confirms that this is the correct thing to do.Can anyone help?
Alex
I don't have any personal experience in this area, however I think that the director as an employee can claim business mileage using the AMAP rates. The company can then reclaim the VAT on the fuel element using the advisory fuel rates. Note: the advisory fuel rates are inclusive of VAT so you would need to apply the VAT fraction to the rate in order to calculate the VAT element.I found this (albeit slighty old) article which provides an example:http://www.is4profit.com/business-advice/finance-and-money/business-mileage-vat-fuel-recovery.html HMRC - Advisory fuel rateshttp://www.hmrc.gov.uk/cars/advisory_fuel_current.htm Hope this helps.
Helenhttp://www.lookaftermybooks.com/
