VAT on petrol (used in machine)

O

obrdor

Guest
I am self employed and work in garden maintenance. I understand vat can not be claimed back on petrol. However if this is used in machines such as strimmers, saws, mowers etc - can it be claimed back.
 
According to Leaflet IT49 - VAT for Small Businesses:

A deduction is not allowed for VAT on any of the following, even when the services and goods in question are required or used for the purposes of a taxable business:

- The purchase of petrol otherwise than as stock-in-trade

which basically means that the only people who can reclaim VAT on petrol are those who are subsequently selling it on directly (ie garages)
 
But...

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What expenses can I claim for?

You can claim for any business expenses which you have incurred in order to earn your profits. These expenses are normally referred to as revenue expenditure.
Revenue expenditure is your day to day running costs and covers such items as:
  • Purchase of goods for resale
  • Wages, rent, rates, repairs, lighting and heating etc.
  • Running costs of vehicles or machinery used in the business
  • Accountancy fees
  • Interest paid on any monies borrowed to finance business expenses/items
  • Lease payments on vehicles or machinery used in the business
If you are registered for VAT the expenses you claim should be exclusive of VAT.
 
Crugers said:
But...

[broken link removed]
What expenses can I claim for?

You can claim for any business expenses which you have incurred in order to earn your profits. These expenses are normally referred to as revenue expenditure.


Revenue expenditure is your day to day running costs and covers such items as:
  • Purchase of goods for resale
  • Wages, rent, rates, repairs, lighting and heating etc.
  • Running costs of vehicles or machinery used in the business
  • Accountancy fees
  • Interest paid on any monies borrowed to finance business expenses/items
  • Lease payments on vehicles or machinery used in the business
If you are registered for VAT the expenses you claim should be exclusive of VAT.
Click to expand...


By all means you can claim the cost of the petrol in the machine as an expense, there is no problem with that, you just cannot claim the VAT on the petrol, therefore the gross amount including irrecoverable VAT will show as an expense in the accounts of the business.
 
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