Yes, you can claim fuel as a business expense in the UK. If you use a vehicle for work purposes, the cost of the fuel used for those journeys is a tax-deductible expense. This means it can be used to reduce your overall tax bill.

However, you must be able to prove that the fuel was used specifically for business travel. Commuting between your home and your regular place of work does not usually count.

What type of expense is fuel?

Fuel is classified as a motoring or travel expense. Depending on your business structure, it is treated in one of two ways:

• Actual cost: Claiming for the exact amount spent on fuel (requires keeping all receipts).
• Simplified expenses: Claiming a flat rate per mile (known as MAPRs – Mileage Allowance Payments).

Who can claim?

Most people running a business or working for one can claim fuel expenses, provided the travel is purely for business.

• Self-employed/Sole traders: You can claim for business trips made in your own vehicle.
• Limited company directors: You can claim for business travel, but the rules differ slightly if you use a company car versus a personal car.
• Employees: If you use your own car for work, your employer can reimburse you, or you can claim tax relief.

How does it work?

To stay on the right side of HMRC, you need a clear "paper trail."

• Log your journeys: Record the date, destination, and purpose of every business trip.
• Keep your receipts: You must have VAT receipts for all fuel purchases if you are claiming actual costs.
• Calculate the business split: If you use the same car for personal and business use, you can only claim for the business portion of the fuel.

How fuel cards can help

Managing fuel expenses manually is time-consuming and prone to errors. Using a Radius fuel card simplifies the entire process:

• No more receipts: You get a single, HMRC-compliant invoice. This replaces the need for drivers to collect and submit paper receipts.
• Easier VAT recovery: Our invoices clearly break down the VAT, making it simple to reclaim from HMRC.
• Controlled spending: You can see exactly where and when fuel is being bought across your entire fleet.
• Improved cash flow: Most fuel cards offer a period of credit, meaning you aren't paying for fuel out of pocket at the pump.