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Business mileage and VAT

  • Member
  • 46 posts
  • # 98115

After doing some digging I believe that his own business would recaim the VAT, not the company he is contracted to and the expense claim from his home to the location of the company is a valid one. Can anyone confirm this?

Edited at 08 Mar 2014 11:44 AM GMT

  • Member
  • 46 posts
  • # 98116

Bike Fan said:

The company I work for employs someone on a consultancy basis and that person invoices us for a set amount monthly + VAT.  Their (VAT registered) business is located at their home address. They use their own car to travel from home to work and for business purposes. They are claiming 45p per mile for travel from their home to work in addition to other business mileage.

Q1. Does travel fom their home to work constitute business mileage?

They tell me that it does because they are sub-contracting.  If they are travelling from the company on business, then I understand that this is a valid claim, but I'm not sure about the travel from their home to their place of work.

Q2. Does the company pay them the full 45p per mile that they are claiming?

Q3. Is it correct that the company I work for can reclaim VAT on fuel expenses thus; business mileage x fuel rate divided by 6?

I don't believe it is, as he would have to claim it back himself.

Q4. Is it also true that ALL fuel receipts need not be kept to claim the VAT as long as you have a good selection?

Q5. What is meant by 'a good selection'?

I would appreciate some advice on this. Thank-you.

 

Phil



Edited at 08 Mar 2014 10:25 AM GMT

Edited at 08 Mar 2014 10:32 AM GMT

Edited at 08 Mar 2014 10:35 AM GMT

 

  • 160 posts
  • # 98402

Hi Bike Fan,

 

This link below can help you a lot;

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_CL_000041&propertyType=document

Kind regards

Paula Welsh

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