Claiming back Vat on Fuel.

[Mickys]

Hi can you please clarify a couple of things. If a company pay for all fuel on the company credit card can you claim the vat back on all of it. If their employees has put more fuel in than equates to the x business miles a deduction is made for private use. Should the private element then be adjusted for the Vat claimed.

This is a ltd company.

Thanks

[les35]

If the company pays for all the fuel then the fuel scale charge applies, unless the car is used entirely for business purposes (and you must be able to demonstrate that). And, they are using cars, not vans!?
If you use the fuel scale charge, why is an employee then paying for their own fuel?

[Mickys]

Sorry I have not explained it clearly enough.

The fuel is paid for by the company but if the employee say does 100 business miles at 15p per mile which is £15 but the employee has used the company credit card and put £20 in. The remaining £5 is deemed as private and therefore a deduction to them is made. With regards to the VAT what will I need to do?

Thank you.

[les35]

The company can claim back VAT at 1/6 of £15, as long as it has proper invoices.
Or, claim VAT on £20, and then account for output tax on £5.
See HMRC Notice 700/64: https://www.gov.uk/government/publicati ... g-expenses