Mileage VAT calculations has been designed to work using the HMRC rules when claiming back VAT on a business journey, this means the system calculates 20% of the Fuel Rate and not 20% of the Mileage Rate paid to the end-user.

We recommend turning on the "Personal/Company car mileage must have a receipt" policy rules to enforce your users attach a valid fuel VAT receipt to their mileage expenses.

Personal Car Mileage Expense

The Fuel Rate is determined by the Vehicle Details selected by an end-user when creating a Personal Car Mileage expense.

Company Car Mileage Log Expense

The Fuel Rate is determined by the Vehicle Details their company car is set up with by admin users or the end user if they manage their own vehicles.

To set up your account for calculating VAT on mileage please follow the below steps:

1. Navigate to Admin and click on Mileage and Fuel Rates.

2. In the top table, click Edit next to a mileage rate you wish to turn on Calculate VAT for.

3. Click the Calculate VAT tick box and Update.

Follow the above steps for each mileage rate you require VAT calculations turned on for.

4. Scroll down to the bottom table click Edit next to a fuel rate.

5. Assign the 20% VAT Rate to the fuel rate and click Update.

Follow the above steps for each fuel rate you require VAT calculations on. Once completed you should find your Mileage and Fuel Rates tables look like the below:

If you are using custom fuel rates please check with the HMRC, rules for claiming back VAT.

Related Articles

Receipt Verification

Change mileage rate settings

Change fuel rates

Add your company cars

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