Share this content
0
1808

Advisory Fuel Rates

Can you claim VAT on mileage in a private car?

Didn't find your answer?

Search AccountingWEB

Just noticed something new on HMRC Advisory Fuel Rates website - "These Advisory Fuel Rates (AFR) only apply to employees using a company car."

Also on other link:

"When you can use the mileage rates

The rates only apply when you either:

reimburse employees for business travel in their company cars

require employees to repay the cost of fuel used for private travel

You must not use these rates in any other circumstances."

Has this been always the case or if not - when did it change?

 

 

Replies

Please login or register to join the discussion.

18th Jul 2018 17:34

You can pay any rate you like. But the input tax recoverable is restricted to 1/6 x the advisory rate.

Thanks (2)
avatar
to leshoward
19th Jul 2018 10:16

leshoward wrote:

You can pay any rate you like. But the input tax recoverable is restricted to 1/6 x the advisory rate.

Do employee have to present fuel bills dated on or before the journey for employers to claim?
Also can a voluntary member of club officials be treated the same as an employee so a club could claim 1/6 x the advisory rate for the mileage claims reimbursed?

Thanks (1)
avatar
to leshoward
19th Jul 2018 14:19

Thanks for this. HMRC states however "You must not use these rates in any other circumstances." so I am not sure you can use the advisory rate for input vat claim in private cars.

Thanks (0)
to deeagle.co.uk
19th Jul 2018 14:29

That comment relates to income tax only.

HMRC guidance in relation to VAT is here:
https://www.gov.uk/hmrc-internal-manuals/vat-input-tax/vit55400

See the last sentence of the penultimate paragraph of the section headed "Input tax when employees are paid a mileage allowance".

Thanks (2)
avatar
to Portia Nina Levin
19th Jul 2018 14:35

Thank you very much for this - panic over!

Thanks (0)
19th Jul 2018 12:49

Looks like you may be confusing the Advisory rates for fuel in company cars for business use (calculated for the fuel cost as the company already stands the capital costs in providing the car), and the flat rates payable to employees using their own car (calculated 'allegedly' to cover the employees capital costs as well as fuel). That has been the case for many a day.

Thanks (1)
avatar
to Paul D Utherone
19th Jul 2018 14:15

Thank you for this. I understand that the employees using their own car can claim mileage at 45p/25p mile. My understanding was that the company could also claim the input VAT on the mileage used for business trips made by emloyees in their own cars as per the advisory rates. However, as per my initial query, HMRC website states now that the advisory rates must not be used in any other circumstances rather than when company car is used. I do not remember seeing this statement before and think that this is something new. So what is the basis, if any, for claiming input vat on mileage done in private cars? I

Thanks (1)
Share this content