Invoice for mileage

[PurpleGorilla]

If I invoice for 45p per mile mileage (with a VAT receipt to cover) do I add VAT on top?

So 100 miles x 45p = £45 or £45 x 1.2?

[northernladuk]

Blimey.....

[LondonManc]

If I invoice for 45p per mile mileage (with a VAT receipt to cover) do I add VAT on top?

So 100 miles x 45p = £45 or £45 x 1.2?

You invoice fuel with VAT or the mileage. Not mileage with VAT.

That's why the boomers are in charge, they can do this sort of stuff. HTHBIDI

[PurpleGorilla]

You invoice fuel with VAT or the mileage. Not mileage with VAT.

That's why the boomers are in charge, they can do this sort of stuff. HTHBIDI

thanks [emoji106]🏾

[NotAllThere]

Blimey.....

To expand. As has been discussed here many times, you invoice your expenses + VAT. If your company is merely seeking reimbursement from the client, then you either give them the receipts, or in case of mileage where they've agreed to reimburse your company a certain amount per mile, you tell them how many miles.

You cannot put on your invoice:

20 days @ £100 per day ..... £2000
.........................VAT..£400
100 miles @ 45p per mile ......£45
.......................Total £2445.

[eek]

To expand. As has been discussed here many times, you invoice your expenses + VAT. If your company is merely seeking reimbursement from the client, then you either give them the receipts, or in case of mileage where they've agreed to reimburse your company a certain amount per mile, you tell them how many miles.

You cannot put on your invoice:

20 days @ £100 per day ..... £2000
.........................VAT..£400
100 miles @ 45p per mile ......£45
.......................Total £2445.

To be clear it should be

20 days @ £100 per day ..... £2000
100 miles @ 45p per mile ......£45
.........................VAT..£409
.......................Total £2454.

[VectraMan]

WHS. You're likely to be detained at Her Majesty's Pleasure* if you invoice for anything without VAT.

However the amount paid for mileage can be whatever you've agreed (no reason it has to be 45p per mile). So it could be 45p + VAT, or it could be 45p inc VAT (i.e. 37.5p + VAT). Depends what's in the contract.


*Probably not.

[TheCyclingProgrammer]

VAT is charged on top of all recharged expenses except in the case of disbursements, which mileage is not.

If you have agreed with client to bill them 45p/mile and that has not been previously agreed as 45p including VAT then it would be reasonable to treat it as 45p + VAT.

If you're recharging fuel receipts then you still charge VAT, but its up to you or whatever you've agreed with your client whether you recharge the original cost net of VAT or inclusive of VAT. If you've reclaimed the VAT on the original cost it would be reasonable (and the client probably expects) to recharge the net amount before adding your VAT.

[ladymuck]

You can charge whatever you like per mile. I used to invoice at £1 a mile! Still only paid myself 45p to avoid it being a BIK.

[LondonManc]

You can charge whatever you like per mile. I used to invoice at £1 a mile! Still only paid myself 45p to avoid it being a BIK.

Good point, I'd assumed claiming expenses rather than billing client.