hi i was after some info please i am selfemployed vat registerd sole trader, i am trying to work out when accounting for fuel purchases how much vat i can reclaim and how much tax allowance, i use the vehicle for both business and personal, the car is a business asset,i have been looking at the other posts but cant get my head around them, also do i have to adjust the vat return each quarter to show percentage of bussiness vat reclaimed or just at the end of year self assesment? i would say i use it 50-50
Not 100% certain but if you claim all the vat on fuel you then pay a fuel scale charge, it's basically a reduction of what you claim back. So where I work all the fuel receipts go through the books, we do a quarterly vat return, you then have a look at the fuel scale charges dependent on emissions, the vat element gets taken off the vat claimed back, all for personal usage.
If you are claiming the actual costs of fuel, Steve is right you should apply the scale charge. In certain circumstances, it's not worth reclaiming the VAT on fuel.
