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Claiming VAT on mileage allowance - why?

Claiming VAT on mileage allowance VS Claiming VAT on fuel receipts

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A company's director is not on payroll and is not remunerated by the company. He uses the company's car for work (not commuting) and he insists in claiming mileage allowance as expenses:

1 - Is the director still considered an employee of the company? If not, is claiming the mileage allowance allowed?

2 - For claiming VAT on this mileage allowance, I understand you have to keep fuel receipts anyway (in case HMRC requests). So why not claim VAT directly on fuel receipts? What is the advantage in claiming on mileage allowance?

Any advice will be much appreciated.

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By Wilson Philips
02nd Oct 2019 11:42

If he is provided with a company car then why is he also claiming a mileage allowance? It sounds like recovery of fuel VAT will be the least of his/company's concerns. Or perhaps you could clarify - when you say 'mileage allowance' are you referring specifically to an allowance based on the Advisory Fuel Rates or to the 45p/25p allowance?

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By Les Howard
02nd Oct 2019 11:19

Whether you claim using mileage allowance or use the fuel scale charge or receipts depends on the arithmetic: does he have business & private mileage? does the company fund business & private mileage, etc?

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Replying to leshoward:
By Finding Accounting
02nd Oct 2019 13:02

Sorry I wanted to reply to other comment....

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By Tax Dragon
02nd Oct 2019 11:21

Being "off payroll" doesn't mean you're not an employee.

You're getting thoroughly confused.

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