Mileage Vat reclaim-sub contractor?
Hi - we use a self employed engineer occasionally and he charges us his mileage separately at 45p per mile rather than including it in his daily rate. Just wondered if we could reclaim the vat element on this as you would for an employee? Just not sure that you can. Thanks for any help.
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Also is it under CIS?
He is not VAT registered but we are and as such can reclaim a small element of VAT on employee mileage payments based on the HMRC advisory rates. I have been asked if we should in this scenario and I don’t know. I can only find that it applies to employees in their own cars not anything on self employed people/agents. Perhaps it is best not too.
Thank you.