Businessman fueling his car

Reclaiming VAT on mileage in the UK

What is mileage?

By definition, the approved mileage allowance or mileage for short may cover the cost of fuel, insurance, wear-and-tear and vehicle tax incurred by an employee on a business trip.

When it comes to your UK VAT on mileage, we want to make sure you reach your full deduction potential in relation to the fuel element of those mileage claims for business trips. Taxback International can help with the reporting of VAT on the fuel element of mileage claims that are supported by receipts dated before and during the travel itself.

And if you have plenty of employees on the road, all this VAT adds up, so it makes sense to maximize your deduction.

Your guide to reclaiming VAT on mileage


Taxback International can ensure you maximize your UK VAT deduction in relation to employee mileage claims.

There are two things you can do to ensure all documents and administration is in order.

Keep mileage records

If your employee is paid a mileage allowance you must have records for each employee showing:

  • the amount of mileage travelled
  • whether the journey is both business and private
  • the cylinder capacity of the vehicle
  • the rate of mileage allowance
  • the amount of input tax claimed

Keep your invoices

The business must obtain and retain invoices for all fuel purchased by its employees. This means either full VAT invoices or less detailed invoices. Input tax can only be claimed on the cost of fuel for business use in making taxable supplies so any invoices need only cover this amount.

We have the expertise you need to ensure your UK VAT deduction is maximized. From fuel receipts, repairs, parking and more, we’ll go through all business motoring expenses with you, providing advice and guidance as you need it. Taxback International provides a full solution for Domestic VAT Reclaim, no matter how many countries require you to file VAT.

Start claiming VAT back on mileage in the UK today.

Book your free one-to-one consultation today and find out how we can help you maximise your UK VAT mileage reclaim.


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