With the current VAT rate at 20% it is crucial that companies reclaim as much VAT as they possibly can.

“Reclaiming the VAT on our employee mileage is too much hassle.”

Well …. 200 drivers doing 100 miles per week is 1 million miles per annum. There is £25,000 of reclaimable VAT in the corresponding mileage expense payments.

To enable them to take advantage of this, the cost of Exevia to this business for the year is £12,000 (+vat).

Companies can make a claim going back sixteen VAT quarters / 4 years. (evidence of receipts and vehicle used will be required)

Exevia includes pre-configured, checked and approved VAT treatments to ensure you comply with current legislation.

As Exevia is cloud-based you are always using the latest version. It is always updated in line with the latest HMRC rules.

We have calculated that one Local Authority could reclaim an additional £25,750 of VAT if they used Exevia to record their ‘grey fleet’ mileage. That’s the good news. The GREAT NEWS is they can backdate that claim for the previous four years. That’s over £100,000!

In order to reclaim the VAT on the fuel element of mileage expenses claims an employer may use a flat rate of 12 pence OR if they know the fuel type and engine size of the vehicle related to the claim they can claim up to 26 pence as per HMRC tables. The Exevia management dashboard provides this VAT amount.

Is the company reclaiming any VAT on business mileage?

Then at worst they are missing the VAT on the flat rate of 12 pence per mile. For this scenario they could be reclaiming £2,000 per month

YES, but at a flat rate (12 pence of which 2p is VAT) since vehicle engine size and fuel type are unknown.

With Exevia the company will know vehicle engine size and fuel type and thus will be able to claim the maximum amount under HMRC rules. This could be as high as the VAT on 26 pence per mile (4.33p) but let’s take an average of 16 pence (2.67p of VAT)

Additional VAT reclaim over flat rate using Exevia = £670

For more information or to setup Exevia for your drivers please Contact Us.