If you're not on the Vat FRS...

[Sausage Surprise]

Does that mean you claim all the VAT back on expenses, such as accommodation, travel, computer stuff, etc?

Therefore the amount of VAT you would forward to HMRC every quarter would be the VAT you charged the client on your invoices, less the bit you're claiming back...if you see what I mean. IANAA...

[ferret]

Yes.

[DonaldG]

Be careful as just about all travel is zero rated for VAT, and you can't claim back any VAT. However you can claim VAT if you are making a mileage claim for business miles in your own car - for example

VAT can be reclaimed on the basis of the following mileage rates (in recent years these have been changing twice pa.) :-
** These are the rates wef. 1 January 2008**
PETROL : 0-1400cc : 11p per mile fuel value
PETROL : 1401-2000cc : 13p per mile fuel value
PETROL : 2001cc + : 19p per mile fuel value
DIESEL : 0 to 2000cc : 11p per mile fuel value
DIESEL : 2001cc : 14p per mile fuel value

So, if 100 business miles are recorded by the employee in a month ...

if a 1401-2000cc petrol car,
VAT : 100 x 0.13 = £13.00 fuel value, VAT reclaim on this 7/47 x £13.00 = £1.94. The employee must supply you with at least £13.00 of fuel receipts to justify the stated VAT claim amount.

[Sausage Surprise]

Thanks for the replies...

[ratewhore]

Does that mean you claim all the VAT back on expenses, such as accommodation, travel, computer stuff, etc?

Therefore the amount of VAT you would forward to HMRC every quarter would be the VAT you charged the client on your invoices, less the bit you're claiming back...if you see what I mean. IANAA...

Granted you're not an accountant but, given you are responsible for running your business, you should know this!!

[Sausage Surprise]

Granted you're not an accountant but, given you are responsible for running your business, you should know this!!

Oh do **** off with your exclamation marks!!

It's impossible to ask a question on here these days without some twat having a go.

[Robot]

Be careful as just about all travel is zero rated for VAT, and you can't claim back any VAT. However you can claim VAT if you are making a mileage claim for business miles in your own car - for example

VAT can be reclaimed on the basis of the following mileage rates (in recent years these have been changing twice pa.) :-
** These are the rates wef. 1 January 2008**
PETROL : 0-1400cc : 11p per mile fuel value
PETROL : 1401-2000cc : 13p per mile fuel value
PETROL : 2001cc + : 19p per mile fuel value
DIESEL : 0 to 2000cc : 11p per mile fuel value
DIESEL : 2001cc : 14p per mile fuel value

So, if 100 business miles are recorded by the employee in a month ...

if a 1401-2000cc petrol car,
VAT : 100 x 0.13 = £13.00 fuel value, VAT reclaim on this 7/47 x £13.00 = £1.94. The employee must supply you with at least £13.00 of fuel receipts to justify the stated VAT claim amount.

These rates MAY have changed due to the recent budget and the VAT fraction will be 3/23 from today.