Vat Input Tax

[RocW]

If you pay an employee HMRC recommended mileage rates for use of his own car on business, how do you calulate the Input tax element? I remember having this conversation with a VAT inspector many years ago but I can't remember how to go about it. Any VAT inspectors out there?

[Buenchico]

Quote:
"Input tax claimed in respect of business mileage payments must be restricted to the fuel element of the mileage rate and be supported by original fuel purchase invoices".

Source:
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/377649/vat-input-tax.pdf
(See page 6).

Current advisory fuel rates:
https://www.gov.uk/government/publications/advisory-fuel-rates/current-rates

Earlier rates:
https://www.gov.uk/government/publications/advisory-fuel-rates/previous-rates

[RocW]

Wow, that was quick! Many thanks. I must admit that i can't quite see the logic in needing the original fuel bills; I suppose it was thought up by the same person who decreed that Corporation Tax must be paid three months before the deadline for submitting a CT Self Assessment Return...