I have a client who has asked me to reclaim VAT on the fuel receipts for his vehicle. I believe his vehicle is classed as a van for tax purposes, he bought this vehicle as he believed that because it is classed as a commercial he could reclaim VAT on all the fuel, however I do believe that there is an aliment of personal use of this vehicle and therefore I have pointed out that, as such, we cannot reclaim all the VAT on fuel. I also believe that as this vehicle is classed as a commercial we cannot operate the fuel scale charge and therefore the only way we can reclaim the VAT is to keep a detailed record of the business/private mileage over the period?
My client has since come back to me and said that they have looked into this and he's asked me to apply the fuel scale charge as he has not kept any mileage records?? Please can someone confirm if my understanding is correct that the fuel scale charge doesn't apply to commercial vehicles, so that I can advise them to keep accurate mileage record?
I came across exactly the same thing with a client - he drives a VW Transporter which is classed as a commercial vehicle. It is mainly used for business but there is also an element of personal usage. I couldn't find any information as to what to do on the HMRC website and so I gave them a call. They advised that I should use the Fuel Scale Charge even though it's a commercial vehicle. Hope they're right as that's what I've been doing for the past year!!
The legislation providing for the fuel scale charge ( VAT Act 1994, Sch 6, para A1) refers only to private cars, not commercial vehicles. Consequently, I would not use the scale charge for a commercial vehicle. If the vehicle is used partly from private purposes, I would make an apportionment, based on the actual such use. PN 700/64, para 9.1 says the same thing.
If you have been using the scale charge, then you will have a claim to make!
Hi Les
How would this work if they dont use it for personal? It is parked at their house overnight/weekends but they have another vehicle and a motorbike to use personally?
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Home to/from place of work is private use. If the client works from home, then you can ignore that! Since he has another vehicle, use of the commercial vehicle is therefore entirely business.
I understand that the fuel scale charge is only applied to cars, since most drivers of commercial vehicles would not be expected to use them for private purposes. (Would you drive your children to school in a breakdown truck?)
But one simply has to have a 4*4 to go to Sainsbury's though doesn't one!
It's been my arguement for a long time that traffic calming measures are sponsored by $*$ manufacturers and Petrol companies as they don't calm traffic, they simply ensure that everyone buys bigger gas guzzlers in order to ignore the speed bumps (is it a coincidence that the 4 and $ are attached to the same key!).
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Oh it has to be Waitrose dahhhling. (Although there are quite a few in Aldi these days - either through being all fur coats and no knickers buying 4x4s or because its suddenly trendy to shop there!)
Oh and someone else who agrees with me that traffic calming measures are a con!
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
