I came across article on tax tips where it stated employees (inc directors) that use their own car or van in a company.
The company can claim the VAT on Car Expenses like repairs, servicing etc where the invoice is billed and paid by the business.
The amount that can be claimed is the amount of mileage claimed for the financial year less the fuel element (based on HMRC advisory fuel rates) which will equal the maximum value allowable for the VAT on car expenses. Is this correct ?
Would this be classed as a benefit in kind ?
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I think you are confusing an employee claiming mileage with one running a company car, but as the question itself is so confused, who knows.
The company can claim 2.5p per mile input VAT provided the employee has a VAT receipt for at least the amount claimed. I assume what you read means that the VAT receipts for servicing etc and not just fuel could be used to support the input VAT claim but I don’t know.