Overview

VAT reclaim methods

Businesses have four options for claiming VAT on fuel. They can:

1. Claim all of the VAT because 100% is used for business purposes
2. Claim no input VAT
3. Claim all VAT charged and apply the HMRC VAT Scale Charges to account for fuel used for private travel
4. Use detailed mileage records to separate business mileage from private mileage

VAT receipts
The Value Added Tax (Input Tax) (Reimbursement by Employers of Employees’ Business Use of Road Fuel) Regulations 2005 require all claims for VAT on business fuel to be supported by receipts to the value of the claim.

To find out details on the above VAT reclaim methods, please download this briefing which explains more.