reclaim vat on fuel

A Basic Guide About Reclaiming VAT on Fuel

A question that is getting asked over and over again is how is reclaiming VAT on fuel done? It is considered to be the most difficult to deal with the process of VAT on mileage claims for the clients. This has been observed through the frequently asked questions of the customers. It is a must to meet the required standard of the HMRC and relevant pieces of evidence to be submitted to initiate the process.

This standard makes it a hard task to complex requirements to claim VAT on fuel. This is because ensuring to satisfy HMRC and the processing in the right way is compulsory to get the maximum benefits. If you aim to make a claim, you are just on the right article and you will find the discussion covering the basic understanding of reclaiming VAT on fuels, how is fuel scale charge is beneficial, and reclaiming VAT on other business elements.


Learn Reclaiming VAT on Fuel

Here in the discussion is a compilation of the most popular ways that businesses use to reclaim VAT. This could be used on petrol expenses, fuel expenses that are spent on the business trips. This will help you to pick the most suitable approach for your business requirements.  We have listed and explained them below for you:


1- Business Reclaim of VAT 100%

According to the instructions of HMRC, you are allowed to make a 100 % reclaim on VAT (value-added tax) incurred for the file spent on business trips. However, there is the requirement of shreds of evidence that can prove that the fuel was entirely used for the purpose of business and not personal use.

Not even a single private journey will be entertained in this process of making a reclaim. The case is a little different if your vehicle is considered in association with the driving school or a taxi firm.


2- Useful Fuel Scale Charge

In case you are used to paying VAT fuel scale charges, you are allowed to make a claim on VAT for the fuel you have used for business purposes. It is considered the most simplified way that can even cover the private used fuel. An example of such a vehicle that is used for business purposes as well as personal use, paying the appropriate fuel scale charge will help you to get the VAT claim in both cases.

The process is affected by CO2 emissions and the type of vehicle you use. In some of the cases, it has been observed that mileage claim rates are low, so the process of VAT claiming will turn out to be expensive for you. HMRC auditors find this method the easiest to go with.


3- Make a Claim for Business Mileage

If you happen to maintain a mileage claim log in detail, you can avail this option of reclaiming VAT on important business elements. The calculation about how much amount you can get from the claim would be done later. An alternative option can get the help of advisory fuel rates that are published by HMRC.


4- What If You Choose to Claim No VAT?

This option is also a part of the guide provided by HMRC. However, if you make a decision of no VAT, this will be applied to all the business vehicles even if they are commercial vehicles.  This means you will not be able to make a claim on VAT about the mileage of travelling in the business van.


Are you stuck with the process of reclaiming VAT on fuels and seeking professional help? Speak to one of the professionals to enjoy instant help for your queries. Give us a call on 02034411258 or request a callback.


The Bottom Line

Now that you have gathered a fair amount of information about reclaiming VAT on fuel, the discussion can come towards wrapping up. Finally, we can say that the process of reclaiming VAT on fuel used for business travelling is beneficial, however, the process of reclaiming is quite tricky.

You need to consider the details required by HMRC seriously and the pieces of evidence to be provided promptly. This will help to complete the process and get the most from the option of reclaiming VAT. If not, you can seek a professional’s help to make the process seamless. We hope these few minutes of reading will help to make the right process of making a claim possible.


Disclaimer: The information about reclaiming VAT on fuel provided in this blog including text and graphics is general in nature. It does not intend to disregard any of the professional advice.

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