Can VAT be claimed on 40p per mile?

Can VAT be claimed on 40p per mile?

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Can VAT be claimed by a company on the 40p per mile paid to employees?

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By cverrier
25th Feb 2011 09:57

Yes!

http://www.hmrc.gov.uk/vat/managing/reclaiming/motoring.htm#6

Make sure that the employees get VAT receipts for all their petrol purchases and hand them over when they do their expense claims (or you won't be able to claim).  Obviously not all of the fuel on those receipts will be for business use, but you need to be able to show documentation that more than covers the business element.

 

 

 

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By 1chillibass
25th Feb 2011 10:06

Is this on the full 40p?

Thanks for the reply.

Can VAT be claimed on the whole amount ie 1/6 of 40p or just on the fuel element?

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By stephenkendrew
25th Feb 2011 11:02

no...

... only on the fuel element.

The current rates are shown in this table: -

http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm

 

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