Employee's own car. Paid authorised mileage rate as per cc of the car - currently has done less than 10,000 business miles since April. Sorry, have looked at previous answers but still not entirely sure of the answer. I am sure that the last time I dealt with this, the VAT could be reclaimed but am not sure of current position and would be very grateful for advice.
Therefore, as an example, if employee is paid £135.00 last month based on 300 business miles @ £0.45 per mile, can the employer reclaim £44.58 ? If not, what can be reclaimed - if anything? Plus - is any documentary "evidence" required apart from an expenses claim form.
Many thanks
Jane
Jane Dines
Replies (6)
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Oops
Thanks for that - I don't know where I got that figure from either - I blame my computer!
Ian - have just looked at the link you suggested but it does say company cars - the car I'm talking about is owned by the employee - does this make a difference?
Thanks.
3 years - 30 years more like
On the basis of the current appeals to the House of Lords in thee cases concerning Conde Naste and Bodycraft you can claim back to 1973 as the C&E forgot to include a transitional period when they attempted to limit recovery of input tax in 1996. Prior to that date there was no limit on the recovery of input tax - so go for it. Just don't hold your breath because the HoL might decide otherwise.
Yes, reclaim on fuel element only
It doesn't matter whether the mileage claim is 20p, 40p or 60p per mile, the fuel element will be the same. I have agreed with VAT officers that for simplicity 2p per mile reclaim is not unreasonable. Yes, as Ian suggested, a detailed mileage log should be kept in support. Additionally now, there should be petrol receipts covering the value and timeframe of the claim.
Not sure where your £44.58 comes from but..
No , the employer can only claim back input tax on the fuel element of the mileage rate. See link for latest table:
http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm
So, say it was a 1600 cc petrol car, for which the fuel rate is 13p per mile you can claim back input tax of 300 miles x 13p = £39 x 7/47 = £5.81.
I think there may be some relatively new rule about staff having to supply vat receipt for the fuel to cover the input tax claimed back but I'm not too sure about this.
Don't think it's a problem
Here is the latest VAT notice on this
http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_PROD1_024938&propertyType=document
As far as I am aware it doesn't make any difference whether the car is a company car or the employees car. Naturally, it has to be genuine business mileage and a log would need to be kept to show what business mileage had been undertaken.
How far can I go?
I have never claimed this because, the amount seems so low in the overall scheme. However it does add up!
I have the log of all business miles for past 6 years.
How far can I go to get the input vat? is it 3 years?
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