VAT rules on business mileage Recently Published
VAT rules on business mileage Recently Published
The travelling expenses are covered by way of a set payment per mile (currently 35p per mile)
Previously, I would have invoiced for time worked as per contract plus business mileage which is reclaimable from the client at their agreed mileage rate and any agreed expenses supported by receipts. VAT would then have gone on top of the total.
It seems as though the end client is now seeking to reclaim some VAT element of the mileage rate by means of the fuel receipts. I am not sure how this is meant to work as fuel purchased by an individual for their personal vehicle is not directly related to the business miles incurred by them. After all mileage allowance is meant to cover wear and tear and running costs of the vehicle as well as actual petrol consumed.
I’m beginning to suspect that they’ve got themselves confused between business mileage for company cars (where the mileage claimed is purely to cover fuel purchased) and mileage rates paid for use of personal vehicles.
Have there really been any changes in VAT rules this month that might explain what they’re on about?
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