Recovering VAT on staff expenses

How to reclaim VAT on supplies made to your employees.

Carr Jenkins Hood can help businesses in the Swansea area with recovering VAT on staff expenses.

Although the VAT rules normally prevent you reclaiming VAT on supplies that are not made direct to you, there are certain circumstances when the rules are relaxed.

Subsistence Expenses

For instance, the VAT element of subsistence expenses paid to your employees may be treated as input tax. In order to qualify for this concession, employees must be reimbursed for their actual expenditure and not merely receive round sum allowances.

VAT invoices (which may be made out to the employee) must also be obtained.

Reimbursement for Road Fuel

The VAT legislation permits you to treat as your own supply road fuel which is purchased by a non-taxable person whom you then pay for the actual cost of the fuel. This would therefore allow you to recover input tax when you reimburse your employees for the cost of road fuel used in carrying out their employment duties.

Again, VAT invoices must be obtained.

Mileage Allowances

The legislation also enables you to reclaim the VAT element (or a reasonable approximation) of mileage allowances paid to employees.

If you’re a business in the Swansea area and would like further information on VAT, please contact Carr Jenkins Hood today.

Do you have any questions for us?

Simply get in touch and the relevant team member will get back to you asap.


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Carr Jenkins Hood is the trading name of Redwood Wales Limited, a Company registered in England and Wales Number: 05137675.
Registered office: Redwood Court, Tawe Business Village, Swansea Enterprise Park, Swansea, SA7 9LA.

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