VAT

From the 1st December 2018 the Advisory Fuel Rates are:

Engine Fuel Engine Size Fuel Rate
Petrol < 1400cc 12ppm
Petrol 1401cc to 2000cc 15ppm
Petrol > 2000cc 22ppm
Diesel < 1600cc 10ppm
Diesel 1601cc to 2000cc 12ppm
Diesel > 2000cc 14ppm
LPG < 1400cc 8ppm
LPG 1401cc to 2000cc 10ppm
LPG > 2000cc 15ppm

VAT can only be reclaimed on the fuel element of the mileage claim, which depends on the engine size and fuel type of your car, as listed above. To calculate the VAT, Tripcatcher takes the number of miles on your mileage claim and multiplies it by the relevant Advisory Fuel Rate and then multiplies the answer by 1/6.

Here is a worked example:

Peter travelled 200 miles on a return visit to a client. He is claiming 45ppm. The mileage claim is 200 * £0.45 = £90

Peter drives a 2200 Diesel, which has an Advisory Fuel Rate of 14ppm. Hence the VAT calculation is 200 * £0.14 = £28/6 = £4.67

In summary Peter can claim £90 for mileage expenses and claim £4.67 worth of VAT on the fuel element of the claim. He will need to keep a fuel receipt(s) for £28 for proof of fuel purchase.

If you are VAT registered (not flat rate) then you claim claim the VAT on your mileage expenses. To set this up in Tripcatcher go to the Tripcatcher Settings page.

Click the "Claim VAT on mileage" box. Select the type of fuel you use and the engine size of your car- this information enables Tripcatcher to use the correct Advisory Fuel Rate.

Fuel Type How to set up the vehicle information for claiming VAT

Engine SizeHow to set up the engine type information for claiming VAT

Now go to the Tripcatcher Expense Claim page and you will see the VAT information calculated on your business trips.

The Advisory Fuel Rates are updated by the HMRC every 3 months, and Tripcatcher is updated as soon as the new rates are published. The dates for changes are: March 1st, June 1st, September 1st and December 1st.

In Tripcatcher you can now claim VAT for trips made in your van. We have confirmation from HMRC that you can claim the VAT on mileage if driving your van for work.

We recommend that you keep all the fuel receipts needed to cover your VAT claim, however you may wish to discuss this with your accountant.

Tripcatcher does not currently capture fuel receipts.

However, there are a couple of ways of capturing and storing your fuel receipts:

  • Upload them to Receipt Bank and archive them - do not submit them, or
  • Use the Xero phone app to take a photo of the receipt and upload the receipts to the files area of your Xero account.

Yes, Xero’s recommendation is to allocate the non-fuel element as a zero rated expense. This will then appear on the Xero VAT report as required.