Basics of VAT

[BolshieBastard]

No, not at all. The mileage allowance is an expense; the only time it will have a VAT implication is if the cost of your mileage will be chargeable to your client in which case you would add it to your sales invoice (hours multiplied by rate) and then apply VAT to the total.

You can also reclaim the VAT element on fuel even if you are on a mileage allowance from your co.

[oracleslave]

The plain truth is being registered for VAT opens you up to a VAT inspection at any time. I dont think the 'benefits' of being VAT registered are worth it so I deliberately maintain my income below the VAT threshold.

That seems an extreme way of dealing with the small chance of a VAT inspection. If you're not turning over more than 70k just go permie.

[SueEllen]

Different people will have opinions on the benefits of registering for VAT. The plain truth is being registered for VAT opens you up to a VAT inspection at any time.

They are nothing to be afraid of if you calculate your VAT correctly.