VAT on Fuel Expenses

May 3, 2022

A question we get asked a lot is:

Can I claim the VAT back on fuel for my car?

The answer is Yes and No


There is a distinction between diesel and petrol.

You can claim VAT on diesel expenses but NOT on petrol.

However, You can only reclaim that portion of the VAT that relates to business travel. 

This means that you would have to track your business mileage during each VAT period and calculate your business mileage as a proportion of your overall travel using the vehicle.

For example, if you traveled 1000 miles in a VAT period and 500 miles related to business journeys then you could reclaim 50% of the VAT on any diesel expenses.