An employee (or business owner) who uses their own car for business travel can claim mileage at the relevant amount (for a car it's currently 45p up to 10,000 miles and 25p thereafter).

HMRC say that the 45p per mile (or 25p) that you claim for using a car, not only ​covers petrol but it also covers wear and tear and other running costs. As well, you can claim VAT on the petrol element of the 45p/25p.

For the petrol element, you can use the ​advisory rates published by HMRC.

Practically speaking this would like like the following.

Presuming you have a petrol car with an engine size (cc) of up to 1,400, the advisory fuel rate is 12p.

The formula would be as following

Advisory fuel rate * number of miles = £X (inclusive of standard rated VAT)

(45p less advisory fuel rate) * number of miles = £X (Inclusive of no VAT)

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