Mileage VAT Calculation (UK)

  • 28/04/2023
  • 2 minutes to read

Mileage claims are a popular way for businesses to reimburse employees for using their own car for business-related purposes. In the UK, it's possible to include VAT on mileage claims, though VAT can only be reclaimed for the fuel element of the mileage claim.

Note

This functionality is only enabled for the UK localization of Expense Management.

Below, you'll find information on how to set it up in Expense Management so that VAT can be reclaimed for the fuel element on mileage expenses.

You only need to to do two things: Set a posting account for fuel for a vehicle and specify a mileage rate for fuel, and here's how you do that:

To set a fuel posting account for a vehicle, follow these steps:

  1. Choose the Search icon, enter Vehicles, and then choose the related link.
  2. Select the vehicle for which you want to set a fuel posting account.
  3. In the action bar, select Setup.
  4. In the Fuel Posting Account No. field, enter the account number you wish to use.

Next, you need to specify a fuel rate, which is done as follows:

  1. Choose the Search icon, enter Mileage Rates, and then choose the related link.
  2. In the Fuel Rate (LCY) column, enter the fuel rate. Repeat for each line as needed.

See also

Setting up Mileage Rates