Petrol prices?

Question

If you have a business account set up with a bank can you claim tax back on the petrol used?

Answer 1

I recommend anyone who is struggling with the huge hike in petrol prices to take a look here: http://cheappetrolprices.blogspot.com

I stumbled accross this recently after doing a Google search on cheap petrol/gasoline - This looks like this could be a very good alternative for anyone who cannot afford petrol, diesel, hybrid or electric cars.

Answer 2

no

Answer 3

The only tax you can claim back is v.a.t.. if you're registered for v.a.t that is.

Answer 4

i burn petrol and the price is burning a hole in my pocket.. i burn petrol i do i burn.. but prices are petrol burn prices but hole petrol is my prices burn pocket i do

Answer 5

It depends what you mean....

There are a couple of ways to claim back the cost of motoring depending on how you have structured your business.

If you are working as a sole trader there are two things you can do:

1. Claim mileage for your business miles, and pay for all expenses of running the car personally, or

2. put all of the expenses through the business and then 'add back' your private use

If you use method 1, then you dont claim back petrol or any other expense - you claim 40p per mile for the first 10,000 business miles in a tax year and 25p per mile thereafter, which is the allowable contribution towards all the running costs of your car (petrol, maintenance, insurance etc).

Note that the rate for a motorcycle is different - and you can also claim mileage for bicycle miles

Of that 40p, the petrol element changes every year and can be found at  http://www.hmrc.gov.uk/cars/advisory_fue... - for petrol cars of 1401-2000cc it is currently 15p per mile. If you are VAT registered and have kept VAT receipts you can claim back the VAT on the fuel element.

If you use method 2, then you have to add back the VAT on the fuel for your private use proportion of your fuel, and you then have to deduct on your tax return the private percentage of your total motoring expenses.

If you are a company it tends to be method 1 that is used (or you have a company car and reclaim fuel at the petrol rate mentioned earlier).

Your accountant can help you with this.