Budget - Mileage Rates
tomburns1987
Registered Posts: 42 Regular contributor ⭐
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
Thanks
Tom
0
Comments
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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.0 -
It is currently 40p for diesel / Petrol 5% VAT but it is due to change in April.0
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tomburns1987 wrote: »It is currently 40p for diesel / Petrol 5% VAT but it is due to change in April.
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.0 -
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.0 -
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.0 -
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.0
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