Fuel costs

What it means

Fuel for a company vehicle can be claimed three ways: from the mileage log at the registered consumption, at a flat 80 % of fuel purchased, or from satellite tracking data.

The flat rate is the simplest administratively: no log, no arguments about private trips. The remaining 20 % is a non-deductible expense the company simply bears.

When an employee or director uses a private car for a business trip, fuel is not claimed from receipts but as part of travel allowances. The fuel allowance is calculated from the consumption in the registration certificate and the fuel price, and a basic allowance per kilometre is added on top.

How it works in practice

The chosen method holds for the year and belongs in the internal policy. With several vehicles each can have its own regime if the company can evidence it.

Consumption above the registered figure is disallowed unless justified: towing a trailer, city driving supported by measurements, air conditioning in operation.

With company fuel cards, the source document is the issuer’s monthly statement listing each fill-up. We assign fill-ups to vehicles by registration number and, where a mileage log is kept, compare them with the kilometres driven. Discrepancies are settled with the client in the same month, not at the year-end close.

What to watch out for

Filling a jerrycan or fuelling away from the logged route is the first thing an audit looks for. So is a fill-up at a time when the records say the vehicle was in the garage.

Filling a director’s or employee’s private car with the company card is not a company cost. If it is not reimbursed, it is usually a benefit in kind for that person, taxed and subject to contributions, or a receivable from them. The card should therefore be tied to a specific vehicle.