Can anyone confirm what fuel records should be kept if a company car is only used for company business. How is the fuel is claimed for? Can vat be claimed?
Quite difficult to prove a car is used 100% for business purposes. Where for instance is the car kept overnight? Cant be kept at drivers home as driving between home and place of work is personal travel.
Records you should keep is petrol receipts if paying by cash/cheque/company car or fuel statement if paying by fuel card.
Fuel is claimed by business paying for the fuel.
Yes VAT can be reclaimed but you need a valid VAT receipt.
No difference in the record keeping if they take it home each night.
However the employee would have a fuel and car benefit in kind charge on the car if the company owns it and is providing it for personal use.
You would also have a scale charge to be adjusted each quarter from a VAT viewpoint for VAT being reclaimed on private fuel.
As an alternative rather than the company owning the car the employee could use their own car for business purposes and charge the company 45p per business mile up to 10k milies and 25p per mile thereafter. You would need to keep records of business mileage done.
Thank you Mark. What would be easy record keeping for the company to claim business miles if they did take it home each evening?
The rule of thumb I've seen is that private usage of a company car is usually a tax disaster for the employee/director unless the car is ultra-low-emissions. In most cases the employee would come out better if they were to buy the car themselves and charge the company for its use.
