Mileage Expense VAT

Question asked by Alan Bennett 4 years ago

Hi there,

I add up my business miles each quarter. Let's say I did 1000 miles. I create an expense invoice to claim back £450.

I am uncertain about if I should add VAT to this claim (I'm VAT registered). Should it be 20% or 0%


6 Replies

Hi Alan,

When you are creating an expense, the tax is calculated according to what you spent. Once the expense has been approved, a bill is automatically created- you can see this by clicking into the approved expense and then the invoice number under the 'Linked expense claim' heading.

The bill is there for the purpose of the business reimbursing the whole sum to the employee claiming, therefore, there is no VAT added. It will then need to be paid off as a normal bill.

Thus, you need not do anything more than just this.

Hi Aran,

Thanks for your answer!

So to sum up then I should leave the VAT as 0% ?

Hi Alan - am I missing something here, CB has a mileage claim feature in "Expenses" that you can use and it calculates the VAT reclaim automatically depending on the fuel and engine size (unless like me you run an EV!).

Ignore me - Aran's covered it in her screenshot!

Reply to this question

Attach images by dragging and dropping or upload

Your comments will be public and can be answered by anyone in the Clear Books community.

Find out what we do and who we are