VAT is a constantly changing tax making it essential to take expert advice. At Leonherman  we offer assistance with, VAT registration, returns and submissions. We will help with inspections and preparations of VAT.

Maximise VAT Relief on Fuel

If your car is used for both private and business travel, you have two choices when reclaiming VAT on your business fuel:

  1. Reclaim VAT on all fuel but pay the fuel scale charge or
  2. Only claim back VAT on fuel used for business purposes

Choosing the correct method could save you thousands of pounds over the life of your car.

Advisory Fuel Rates

Advisory fuel rates are used by employers if:

  • Employees are reimbursed for the cost of fuel for business travel in their company cars or,
  • Require employees to repay the cost of fuel used for private use

The following advisory fuel rates apply to all journeys from 1st September 2012:

Engine SizePetrolLPG
1400cc or less15p10p
1401cc to 2000cc18p12p
Over 2000cc26p17p
Engine SizeDiesel
1600cc or less12p
1601cc to 2000cc15p
Over 2000cc18p

VAT on Capital Expenditure

Forgetting to monitor the usage of assets subject to VAT recovery can have expensive consequences. If computers costing £50,000 or more (net of VAT) or expenditure relating to land and buildings of £250,000 or more (net of VAT) are not used solely for business use you may require a VAT review.

Get in Touch

To discuss your VAT needs call  0161 249 5040 or email