Mileage Claims

[dmini]

My understanding is that it depends f you are on flat rate vat or not.
Flat rate you cannot reclaim it ( so dont need receipts)
ordinary vat you can (so do need receipts)

[dazbanks]

I run a private limited company and with my current contract I travel extensively. Luckily the client allows me to charge all these expenses back to them, and mileage is charged to them at 40ppm. I just fill in an expense claims form (which hotels, mileage, food etc) and include the VAT amounts for everything but mileage. I then invoice for the total amount. Does anyone know what I do about VAT for the mileage?

[moscow]

In responce

I run a private limited company and with my current contract I travel extensively. Luckily the client allows me to charge all these expenses back to them, and mileage is charged to them at 40ppm. I just fill in an expense claims form (which hotels, mileage, food etc) and include the VAT amounts for everything but mileage. I then invoice for the total amount. Does anyone know what I do about VAT for the mileage?

Hi Dazbanks
When you get the 40p per mile off the client does this class as normal income on tax returns and you are therefore taxed on this amount, If so can you then also claim back your travell expenses such as fuel servicing etc

[VectraMan]

I run a private limited company and with my current contract I travel extensively. Luckily the client allows me to charge all these expenses back to them, and mileage is charged to them at 40ppm. I just fill in an expense claims form (which hotels, mileage, food etc) and include the VAT amounts for everything but mileage. I then invoice for the total amount. Does anyone know what I do about VAT for the mileage?

The expenses you invoice the client for are part of the sale, so you charge them 40ppm + 17.5% VAT.

You can then claim your personal mileage back from yourco at 40/25 ppm, and yourco can reclaim 2ppm VAT (or the amount you have receipts for, and if not on FRS).

Really the two cases are entirely independent.

[googleface]

Clarification

OK,

I understand the amounts that can be claimed during the financial year, but
what if you have been slack in your book keeping and cannot remember the exact journeys and exact amount of miles you have travelled.

How can you calculate the amount of mileage you can claim from the total £ receipts you have????

[Bluebird]

OK,

I understand the amounts that can be claimed during the financial year, but
what if you have been slack in your book keeping and cannot remember the exact journeys and exact amount of miles you have travelled.

How can you calculate the amount of mileage you can claim from the total £ receipts you have????

You don't need the reciepts for your personal re-imbursement from your co - you only need them if you are off-stting VAT collected against VAT incurred - if you don't have the reciepts then you cab include them as part of your VAT.

- Or you make up the journeys as best as you can remember them.