Mileage

student40

I am a bit confused with the mileage allowances.
My employer have some employees with car allowance, so they can only claim depending on the car cc certain pences, for example 0.18p per mile.
In their expenses they have mileage which I have to calculate the percentage of VAT on this and also the fuel receipts, is this not claiming double the VAT?
or is the calculation on VAT for mileage to do with something else?

Thanks

jamesm96

Mike.

student40 wrote: »

I am a bit confused with the mileage allowances.
My employer have some employees with car allowance, so they can only claim depending on the car cc certain pences, for example 0.18p per mile.
In their expenses they have mileage which I have to calculate the percentage of VAT on this and also the fuel receipts, is this not claiming double the VAT?
or is the calculation on VAT for mileage to do with something else?

Thanks

If you claimed VAT on mileage allowance payments and VAT on fuel receipts then this would be wrong.

You should only claim VAT on the mileage allowance (use HMRC's 'Fuel Only' rates to calculate the fuel element of the mileage rate, although it sounds like the employer might already be doing that). You do need to have the fuel receipts too, but they're there for evidence of having paid VAT in support of the reclaim you're making above; you don't do anything with the numbers on the receipts.

Does that help?

Mike.

student40

I thought so but I just wanted to be sure.
Thanks you have been a great help!