VAT on Mileage

VAT on Mileage

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Hi

I was wondering if VAT can be claimed on business mileage?  I was advised that 1pence per mile can be claimed but cannot find the documentation to prove this.

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Euan's picture
By Euan MacLennan
11th Apr 2014 18:14

Advisory fuel rates

If you are asking about claiming VAT on the 45p/25p a mile paid to employees for business mileage in their own cars, the answer is that the employer can claim the VAT included in the Advisory Fuel Rate for the appropriate category of car, but not the full 45p/25p.  For example, you can reclaim 4p of VAT out of the current 24p fuel rate for a petrol car of over 2000cc.  The rates are updated every quarter.  You need to have sufficient VAT receipts (till rolls from petrol stations) to cover the total amount of VAT being claimed.

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