*home

VAT

Index

VAT reclaims on employees' mileage rates

Flat rate scheme

VAT reclaims on employees' mileage rates

When employees make claims for business travel in their own vehicles they do so by way of authorised rates in pence per mile.  It has always been accepted practice to claim input VAT on the fuel element within the overall charge.

From 1 January 2006 you will only be able to do this if you (the employee) can produce a fuel receipt which shows a value for at least the amount of the claim.

link to HMRC site

Flat Rate Scheme

If your turnover is low enough, rather than charge & reclaim VAT at the standard rates on your sales and purchases/expenses, you may just add up all the VAT inclusive turnover and pay over a special discounted flat rate on this figure, ie with no need to worry about the VAT on your purchases and expenses.

Click on the links opposite for the ACCA's guide (PDF) and HMRC's website.

ACCA guide FRS

HMRC - FRS