Where employers reimburse their employees 45p per mile for using their own cars they are able to reclaim input VAT based on the advisory fuel rates.

In the case of a 1600cc diesel car that would be 1.5 pence per mile.  (9p x 20/120). Such a claim needs to be supported by a receipt from the filling station.

 

As with all of our tax tips and web pages this information is necessarily summarised and of a general nature.  If you would like detailed specific advice please contact us.