VAT on fuel receipts

[jonathan2141]

If I file an expenses claim to a VAT registered company for fuel (this is all they are paying for the use of my car) and they pay me the full value of the receipt. Are they allowed to go ahead and claim back the VAT on that receipt?

Thanks
Jon

 

[MyAccountantOnline]

If I file an expenses claim to a VAT registered company for fuel (this is all they are paying for the use of my car) and they pay me the full value of the receipt. Are they allowed to go ahead and claim back the VAT on that receipt?

Thanks
Jon

Hi Jon presumably this is for fuel for business use reimbursed by your employers - if so yes they can treat the VAT you paid as recoverable input VAT.

 

[David Griffiths]

I'd disagree with that. They can only recover VAT on the fuel element of the business mileage travelled. calculated at their advisory fuel rates. So if you travel 100 miles and the fuel rate is 13p per mile, the employer can claim a maximum of one sixth of £13.00

 

[MyAccountantOnline]

I'd disagree with that. They can only recover VAT on the fuel element of the business mileage travelled. calculated at their advisory fuel rates. So if you travel 100 miles and the fuel rate is 13p per mile, the employer can claim a maximum of one sixth of £13.00

Section 8.7 VAT notice 700/64 states -

''What do I need to do if my employees buy the road fuel?
If you reimburse your employees for road fuel used you can treat the VAT they paid as your input tax. But you must be able to show that you have reimbursed them for their actual expenditure on the road fuel. (See paragraph 8.9 below for details of what records must be kept.)''

 

[jonathan2141]

Thanks a lot

 

[David Griffiths]

Section 8.7 VAT notice 700/64 states -

''What do I need to do if my employees buy the road fuel?
If you reimburse your employees for road fuel used you can treat the VAT they paid as your input tax. But you must be able to show that you have reimbursed them for their actual expenditure on the road fuel. (See paragraph 8.9 below for details of what records must be kept.)''

That link refers to road fuel purchased for the business's own vehicles but paid for by employees.

The rules for payment for use of an employee's own vehicle are different

 

[john1989]

Forgive my ignorance.

Where does it say it has to be the business vehicle? I can only see references that the fuel must be for business purposes.

 

[PipeTen-Carl]

We compensate employees for occasional use of personal vehicles at a per mile rate.

We maintain a log of from/to/date/why and we also occasionally request staff provide petrol VAT receipts (minimum once a quarter).

The tracking allows us to prove the usage as real (we can cross reference building sign in sheets, reference support tickets and communications, search things like https://maps.google.co.uk/locationhistory which most of us use knowingly or not). The receipts allow us to evidence what the petrol price was at that time and the per mile recompense is justifiable, plus that there was money being spent on petrol.

This is pretty much the advice we got from our accountant for occasional use personal vehicles, along with with some documents to be signed outlined the individuals responsibility to ensure their personal insurances cover them for occasional business use and such.