This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Reclaiming VAT on mileage on private car use as sole trader?

paultaylor@vatease.c
Posts:397
Joined:Wed Aug 06, 2008 3:02 pm

Postby paultaylor@vatease.c » Fri Apr 21, 2006 8:47 am

When I was a VAT officer that was always the way that I worked. Sole props only had the 3 options: Fuel Scale Charge, Mileage records or no VAT reclaim.

If you have experience of VAT Officers allowing a mileage rate reclaim for Sole Props then I would suggest that Dean try a reclaim on that basis. However, to avoid any chance of an assessment at a later date I would perhaps seek written confirmation from HMRC before making it.

Regards

Paul Taylor
http://www.vatease.co.uk/

King_Maker
Posts:6538
Joined:Wed Aug 06, 2008 3:22 pm

Postby King_Maker » Fri Apr 21, 2006 9:28 am

IMHO, the Scale Charge proceedure is not relevant, as it is seeking to tax private fuel. But, since by definition, a mileage allowance for business mileage at (or below) the HMRC rates has no private fuel element, the fuel content should qualify for Input Tax relief.

paultaylor@vatease.c
Posts:397
Joined:Wed Aug 06, 2008 3:02 pm

Postby paultaylor@vatease.c » Fri Apr 21, 2006 11:27 am

If you are claiming VAT on the fuel element of a mileage allowance you can either:

a) Claim the VAT on mileage paid for both business and private and declare a fuel scale charge, or
b) Claim the VAT only on the business mileage and not declare a fuel scale charge.

Regards

Paul Taylor
http://www.vatease.co.uk/

Lambs
Posts:1611
Joined:Wed Aug 06, 2008 3:15 pm

Postby Lambs » Tue May 02, 2006 11:08 am

Customs' own position can be found here:

http://customs.hmrc.gov.uk/channelsPort ... P188_19699

Regards,

Lambs

Lambs
Posts:1611
Joined:Wed Aug 06, 2008 3:15 pm

Postby Lambs » Tue May 02, 2006 11:20 am

Oops.

Employees only.

Sorry,

Lambs

brook
Posts:1
Joined:Wed Aug 06, 2008 4:00 pm

Postby brook » Mon Oct 15, 2007 1:10 pm

hi
i run a small business and use a van,
but want to sell this and use a car and trailer both will be just for business use.
the car will be on contract hire, can i reclaim all vat?
thanks brooks


Return to “VAT & Excise Duties”