Can I reclaim the VAT on fuel used for business trips?
Simple answer is yes!
As you may have imagined when considering all things tax, the amount you can reclaim is not simple to arrive at.
There are 4 main ways to deal with VAT on fuel.
Claim it all – you can only do this if you use your car for absolutely 100% business use 100% of the time. Stop off at the shops for a loaf of bread on your way home then you can no longer claim. It is virtually impossible to have a car that has no private usage. So, you could:
Claim all the VAT and pay the correct fuel scale charge for your vehicle You can work out your fuel scale charge here. This method can work out expensive unless the car does a lot of mileage and has low CO2 emissions,
Claim VAT just on business mileage You will need to keep a detailed business mileage log and can claim 45p per mile in your accounts. This will allow you to claim back the VAT on fuel element of this rate using the advisory fuel rates, published here. You must make sure that you retain VAT receipts to show fuel purchased of at least the amount that you are reclaiming.
Claim no VAT at all – if you choose this option then you need to apply this across all the vehicles in your business, including commercial vehicles
If you haven’t been claiming your VAT on fuel then it is possible to make a claim for up to four years
If you have any questions about claiming VAT in your business, please do get in touch firstname.lastname@example.org
Alison obtained a First class degree in Accountancy and Management at UCLAN University. She then went on to qualify as a certified accountant in 2006 and became a founder member in 2011.
Alison trained at a practice in Liverpool and, within her 10 years there, she developed as an accounts manager and obtained a varied portfolio of clients which has provided her with a range of experience in accounts, audit, VAT and taxation. Alison specialises in giving sound jargon-free advice to a range of small and medium sized businesses.