fuel recovery

Business Mileage:  VAT Fuel Recovery

Business Mileage: VAT Fuel Recovery

For many business owners, motoring costs represent a significant proportion of their firm’s expenditure. As fuel prices have recently climbed to unprecedented levels, reclaiming VAT on car fuel is an ideal way to recover some of these draining costs. However, it is imperative that this process is carried out correctly as this is often one of the first areas that a VAT inspector will study when reviewing your accounting records. If you pay a mileage allowance to your employees for business journeys made in either their own vehicle or a company car, you can reclaim VAT on the fuel element of those mileage payments. How it works: Private vehicles The mileage allowance for private cars is 40p per mile for the first 10,000 miles and 25p per mile for additional business miles driven in the same ... »