Mileage Vat reclaim-sub contractor?

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PatsyC
PatsyC Registered Posts: 27 New contributor 🐸
in VAT
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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  • douglasstroud
    douglasstroud Registered Posts: 295 Dedicated contributor 🦉
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    If he is self-employed then the mileage is just included in the total of his invoice, if he is not VAT registered then what is there to claim back?
    Also is it under CIS?
  • PatsyC
    PatsyC Registered Posts: 27 New contributor 🐸
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    Yes I thought he should include it in his daily rate rather than invoicing separately. No not under the Construction Industry Scheme at all.
    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.

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