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The Book-keepers Forum (UK) -> VAT, Payroll & Tax -> VAT ON FUEL QUESTION
Post Info TOPIC: VAT ON FUEL QUESTION
StuartAnder


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VAT ON FUEL QUESTION
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Hi Have a question, probably a rubbish question but here goes....

 

Would it worth a courier driver voluntary registering for VAT, In order to claim back the VAT proportion on fuel costs- but can they do this if they are doing the mileage allowance (45p etc etc) against tax??

Thanks

 

Stuart



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GJRobbins


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Hi Stuart

No, not really.. You cant claim the actual fuel expense or reclaim the VAT if claiming a 45p mileage allowance - its either one or the other.

You can claim a proportion of the VAT on the 45p mileage allowance depending on fuel and engine size of the car - http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm

Also, take into account he will now be 20% more expensive as he charges VAT on all his sales, not too much of a problem if all his customers are VAT registered as they can claim it back, but joe public wont be able to if not VAT registered.. so he risks not being very competitive.

Hope that helps

Thanks

Jeremy
Optegra Financial



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StuartAnder


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sorryim slightly confused.

So you are saying a self employed courier can not reclaim the normal mileage for tax purposes, and reclaim the vat on the purchase of fuel from the receipts?

thanks

Stuart

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gillyfleur


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He can't do both. He can either reclaim the vat on the fuel element of the 45p - 11p I think for a 2.0l vehicle. Or he reclaims the vat off his fuel receipts but might have to pay a scale charge. I agree that it probably wouldn't pay most s/e couriers to be vat registered unless all of his customers were also vat registered as he'd be uncompetitive on B2C sales

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