Employees are provided with company cars but some of them only do business mileage in these cars. At what rate can VAT be reclaimed on the business miles/fuel which the employee uses.
Caroline Mills
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Replies (2)
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See HMRC's website...
If the employee is paid a mileage rate, the business can reclaim the VAT on the fuel element. The accepted fuel element can be found on HMRC's website:
http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm
If the business purchases petrol for use in its or its employees cars then it can claim VAT on both business and private use but must declare the fuel scale charge on each VAT return. Details of the fuel scale charge can be found in HMRC's Motoring Expenses Public Notice
Hope that helps
Paul Taylor
VATease - VAT Advice
Make the most of it
Hi Caroline
Have a look at Rebecca Bennyworth's article as the ability to claim back VAT is likely to go soon. www.accountingweb.co.uk/item/145969
Paul