- Input VAT on fuel is only recoverable for business use; private use must be excluded.
- Businesses can apportion fuel VAT using the Road Fuel Scale Charge (RFSC), detailed mileage records, or by only claiming VAT on actual business mileage payments.
- The RFSC is based on a car’s CO2 emissions and must be applied for each car used for both business and private purposes.
- The Flat Rate Scheme does not allow VAT recovery on fuel, and the RFSC does not apply to commercial vehicles.
- To reclaim VAT on mileage payments, employees must provide fuel VAT receipts; otherwise, HMRC may deny the claim.
Source: marcusward.co
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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