VAT reclaimable on mileage
HMRC have revised the rates to be used for reclaiming the appropriate fraction of 1/6 of input VAT on mileage claims with effect from 1st December 2021 as follows:
| Engine size | Petrol – rate per mile | LPG – rate per mile |
| 1400cc or less | 13 pence | 9 pence |
| 1401cc to 2000cc | 15 pence | 10 pence |
| Over 2000cc | 22 pence | 15 pence |
| Engine size | Diesel – rate per mile |
| 1600cc or less | 11 pence |
| 1601cc to 2000cc | 13 pence |
| Over 2000cc | 16 pence |
It is interesting that the rate changes for VAT purposes but not the overall mileage rate of 45p a mile which has been the same where the petrol cost £50 per litre or £1 per litre!
