Value-Added Tax rules vary from country to country. In the UK, when a private vehicle is used for business purposes, it saves the business from leasing the employee a car. There is an additional “value-added benefit” – VAT reclaim.
When a UK employee uses their car for business – beyond the usual commute to work – the employer can make a claim against the approved mileage allowance payment rate to reclaim some money back.
Source Blue Dot
