VAT Reclaimable on Mileage Claims

Due to the increase in the cost of fuel as well as the increase in the VAT rate HMRC have published variable rates to calculate the amount of VAT to be reclaimed per mile on the mileage claims.

Rather than simply claiming VAT of 2 pence per mile on each mile claimed the advisory fuel rates published by HMRC should now be used.

You will need to know if the car is petrol, diesel or LPG and the engine size.

The amount of VAT to be reclaimed per mile is as follows-

For all mileage claims up to 28 February 2011
(VAT – pence per mile)
Engine Size              Petrol      Diesel     LPG
1400cc or less          2.17        2.00        1.50
1400cc – 2000cc      2.50        2.00        1.67
Over 2000cc             3.50        2.50        2.50

For all mileage claims from 1 March 2011
(VAT - pence per mile)
Engine Size              Petrol       Diesel    LPG
1400cc or less          2.33         2.17       1.67
1400cc – 2000cc      2.67         2.17       2.00
Over 2000cc             3.83         2.67       2.83