Budget - Mileage Rates

tomburns1987
tomburns1987 Registered Posts: 42 💫 🐯 💫
in AAT Level 4 (Level 8 in Scotland)
Is there anyone dealing with business expenses that knows how the change in mileage rates (found here - http://www.businesscar.co.uk/story.asp?sectioncode=1&storycode=7121&c=2&theme=0) will differe between Diesel and Petrol? will it now be 45p per mile for both fuel types? And is the VAT rate still 5%?

Thanks

Tom

Comments

  • PGM
    PGM Registered Posts: 1,954
    I didn't know it had changed.

    As far as I know it'll be the same for petrol/diesel.

    And vat is 20%, but only on the fuel element.
  • tomburns1987
    tomburns1987 Registered Posts: 42 💫 🐯 💫
    It is currently 40p for diesel / Petrol 5% VAT but it is due to change in April.
  • Monsoon
    Monsoon FMAAT, AAT Licensed Accountant Posts: 4,071 🎆 🐘 🎆
    tomburns1987 wrote: »
    It is currently 40p for diesel / Petrol 5% VAT but it is due to change in April.
    I'm not sure I follow about the 5% VAT. What is 5% VAT? Fuel is standard rated and if you are VAT registered you can use the advisory fuel rates to reclaim VAT, there isn't a flat rate of VAT to reclaim.

    I have only heard its gone up and I have not read up on the specifics but I am guessing that as of 6th April we just subsitiute 45 for 40 and 25 for 20 when calculating mileage rates and use the updated advisory fuel rates for VAT.
  • PGM
    PGM Registered Posts: 1,954
    tomburns1987 wrote: »
    It is currently 40p for diesel / Petrol 5% VAT but it is due to change in April.

    I think you're talking about the vat you can reclaim on the 40p per mile, which does work out about 5% when you can only take into account the fuel element of the 40p. I haven't calculated it for a while, but does the fuel element change with engine size?

    And I've no idea how it'll be affected by the change to 45p.
  • Monsoon
    Monsoon FMAAT, AAT Licensed Accountant Posts: 4,071 🎆 🐘 🎆
    Thanks PGM that makes sense about the 5%.

    Yes the rates change depending in engine size and also fuel type.

    This is a separate calculation to the mileage rate which is a flat 40p etc.
  • tomburns1987
    tomburns1987 Registered Posts: 42 💫 🐯 💫
    PGM wrote: »
    I think you're talking about the vat you can reclaim on the 40p per mile, which does work out about 5% when you can only take into account the fuel element of the 40p. I haven't calculated it for a while, but does the fuel element change with engine size?

    And I've no idea how it'll be affected by the change to 45p.

    Yes this is what I meant. Sorry it wasnt clear.

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