The Book-keepers Forum (BKF)

Post Info TOPIC: VAT on fuel element of mileage allowance


Guru

Status: Offline
Posts: 1470
Date:
VAT on fuel element of mileage allowance
Permalink Closed


Hi all,  

Not posted for ages....hope everyone is well

I hope someone can clear this up for me.  I tried a search but couldn't find any recent posts regarding this.  One of my clients wishes to start reclaiming the VAT on the fuel element of mileage allowance paid to employees for travel in their private cars.  I have checked the HMRC advisory fuel rates and it says that this is only for Company cars...is this correct?  If so, I'm assuming then that you can't reclaim the VAT element for miles done in their personal cars.

Many thanks as always for any replies.

Pauline x



__________________

Pauline



Senior Member

Status: Offline
Posts: 154
Date:
Permalink Closed

Hi Pauline

Yes, you can reclaim the VAT on the fuel element of the mileage allowance. I think the advisory fuel rates say that they are only for users of company cars because those users only receive those payments and cannot be paid normal amap's.

If you look at VAT notice 700/64, section 8.8, the confirmation is there. Don't forget that in order to reclaim the VAT, the employees also have to submit fuel receipts that cover the amount if the claim.

Helen

__________________


Guru

Status: Offline
Posts: 1470
Date:
Permalink Closed

Hi Helen,

Thanks for the reply. I will take a look at VAT notice 700/64. I wish HMRC would make things less ambiguous sometimes! Yes, I know about the fuel receipts, I'm going to have fun getting them out of the client's employees!

Pauline

__________________

Pauline



Guru

Status: Offline
Posts: 1470
Date:
Permalink Closed

Just found this on Accounting Web.

www.accountingweb.co.uk/any-answers/reclaiming-vat-on-employees-mileage-expenses

So it looks like HMRC say the advisory fuel rates are for Company cars only, but in practice they let you use them in order to reclaim VAT on personal mileage payments. Another example of clarity by HMRC!



__________________

Pauline

Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.

Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  
©2007-2024 The Book-keepers Forum (BKF). All Rights Reserved. The Book-keepers Forum (BKF) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Book-keepers Forum and BKF are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Book-keepers Forum. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Book-keepers Forum. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: bookcertltd@gmail.com.

Privacy & Cookie Policy  About