Vat On 40p Per Mile

[Sockpuppet]

Ok, so not on the FRS...

Can't find diddly on HMRC or here (VAT is a 3 letter word so cant search for it).

Claiming 40p per mile, 25p after 10k.

My car gets 50mpg.

Current costs are: £1.07 / litre so a gallon is £4.87

487/49 = 10 ish

So if I say the fuel element of my mileage is 10p can I claim 10p * 0.175 which is 1.75p per mile.

Not a huge amount but adds up to £20/week which all adds up.

Or would HMRC throw their toys out the pram...I do have VAT receipts to cover the money VAT.

[SteveV]

I thought the vat element of the 40p was 2p per mile

[malvolio]

We did this not very long back. However, the answer from most accountants is 1p VAT and 39p cost, since you don't pay VAT on the duty element of the cost.

[VectraMan]

I used to do 2p per mile (as advised), but limited by the amount I actually had receipts for which was always slightly less.

Someone from the VAT office told me that I could claim the VAT on other running costs too (i.e. servicing, repairs, tyres), in the proportion of business use vs. personal use.

[Sockpuppet]

Hmm..Starting to think that this is not worth the hassle. The fuel vat is certainly higher than 1p so I'll do 2p.

[malvolio]

Per litre, and using round numbers, the fuel is roughly 46p, the VAT is then 8p and the duty 49p (well 49.1p to be precise) giving a per litre cost of £1.03p.

If your car does 30 mpg, that's 9.4 litres per 100km or 62 miles. So you use 0.15 litre to the mile, costing 6.86p. (The rest of the 40p is all about depreciation, wear and tear, servicing and so on). So the VAT element isn't very big, hence 1p should cover it. 2p was more applicable when it was 70p a litre

Then again, that's me doing the sums, and as has been shown in the past, I am not the most reliable of mathematicians...


Edit - thinking about this a little further, we all think of it as fuel cost. Of course there is a VAT element to the servicing and wear and tear as well. So if roughly half the cost is non-VAT expenses (depreciation and lost interest mainly) and 6p is fuel, then you should also allow the VAT element of 14p which is 2p-ish. So perhaps 2p per mile is fairly realistic.

[ratewhore]

Don't we pay accountants for this sort of thing?

[Sockpuppet]

Don't we pay accountants for this sort of thing?

CUK is my free accountant. After my accountant added up the last invoice wrong I got rid of them.

Ok, this was the second time I had to tell them they added up my invoice wrong. They also got the first invoice wrong. So 2 of 2 invoices were wrong or 100% as I like to call it. Gives me faith in their accounting abilities.

Not impressed.

[ASB]

Per litre, and using round numbers, the fuel is roughly 46p, the VAT is then 8p and the duty 49p (well 49.1p to be precise) giving a per litre cost of £1.03p.

There is VAT on the duty.

[malvolio]

There is VAT on the duty.

You sure? VAT on tax seems slightly redundant...