James Parrott

Hi All, I'm a single director of a limited company and use my own private vehicle for business travel (i.e. I’m treated as an employee using my own car). I expense business mileage based on HMRC’s Mileage Allowance Payments (MAPs) — currently 45p per mile for the first 10,000 miles. I understand that while the full 45p is an allowable tax-free reimbursement for the employee, the company may be able to reclaim VAT on the fuel portion of the mileage — using HMRC’s Advisory Fuel Rates (AFRs). My vehicle is a 1500cc petrol car, which has a current AFR of 15p per mile. So, for example, if I travel 100 business miles: I would claim: 100 miles × 45p = £45 The fuel portion based on AFR would be: 100 miles × 15p = £15 VAT element on £15 = £15 ÷ 120 × 20 = £2.50 Can the company reclaim this £2.50 in VAT, and if so, is it necessary to keep fuel VAT receipts to support this claim? If not, which VAT rate would I assign to Mileage Allowance Payments (MAPs) expenses, Z0.0%? Appreciate any clarification on this — just want to be sure I’m handling it correctly. Many thanks, James

Hi all, I'm a single director of a limited company and work from home full-time, using a dedicated area of my house as my office. Each week, I expense £6 to the company to cover use of home for business purposes — mainly covering business phone calls, electricity, and heating for my workspace. I understand this is the HMRC flat rate allowance for simplified expenses, but I have a couple of questions around VAT: Can the company reclaim VAT on this £6/week expense? As this is a flat rate and not based on actual bills, is a receipt or evidence required to support the VAT element (if reclaimable)? I’m not claiming the actual proportion of household costs, just the standard £6 per week. So I’m unsure whether VAT can be reclaimed at all, or whether it’s treated as outside the scope. Appreciate any advice or links to official guidance. Thanks! James