Claiming VAT on mileage

Last week I mentioned the increase in the flat rate mileage allowance from 45p to 55p (for the first 10,000 miles). But did you know that you can also claim VAT on part of this allowance? The amount that you can claim is the VAT on the fuel element which varies each quarter and depends on the engine size of your car.

This is the same rate used for company car fuel and you can find the latest list here.

https://www.gov.uk/guidance/advisory-fuel-rates

eg if your fuel rate is 17p you can claim 17p/1.2x.2=2.83p VAT on the 55p.