vat on fuel

[Maz]

Hi
I’ve got few drivers doing deliveries , drivers are get paid by us ( not self employed) I gave my accountant few fuel records but I’ve got this in return ..

as they are multiple vehicles you have to include a fuel scale charge which in this case as there is only £265.84 worth of fuel receipts was not beneficial for us to include the VAT on the fuel would of been £44.31 and the fuel scale charges would of been more than the £44.31 therefore you would of actually had to pay HMRC in order to claim the VAT back on the fuel.
I've spoken to Him about putting through an estimate for the fuel and he said we would not be able to do this without receipts.

Can any one advise me where I stand with this ?
Regards

 

[billmccallum1957]

https://www.gov.uk/fuel-scale-charge

 

[Maz]

Hi
Thanks for the link
I couldn’t quiet work out the charges he mentioned as it’s abit confusing
What I’m told by the accountant makes no sense to me as our cars are not used privately as scales charges are for the business cars used private
Regards

 

[billmccallum1957]

Who owns the vehicles? where are they parked overnight? How do the drivers get to work?

These are the main questions....

If you own the vehicles, keep them parked/garaged overnight and your drivers have to travel to work in their own vehicles or use public transport, then you should be able to reclaim all of the VAT.

 

[lesvatadvice]

If the cars are not used privately, you do not need to use the fuel scale charge.
You should have some mileage records, or other evidence, that the cars are not used privately.

 

[WAHaccounting]

If you can provide evidence that there is no private use of the vehicles then you should be able to recover all the VAT. Alternatively, you will be required to pay fuel scale charges, keep detailed mileage logbooks, or just not recover any VAT at all. Bear in mind though that if you choose not to reclaim VAT on fuel for one vehicle you can’t reclaim VAT on any fuel for vehicles used by your business.