A: Yes, but unfortunately you will not be entitled to claim back VAT on the full amount. Instead you can reclaim the VAT applicable to the fuel element of the mileage rate, and you need to ensure the employee submits a valid VAT receipt in support of the claim.
The fuel element of the mileage rate currently varies between 9p and 24p, and depends on the size of the engine and the type of fuel being used. These advisory fuel rates are available from HMRC.
If you would like further guidance on this area, please feel free to contact your local TaxAssist Accountant.
By Jo Nockels
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