If you have employees who run a company car and use it for private purposes you can claim back the VAT on all the fuel but you need to adjust the VAT to cover the private element.
Before you start
Check your CO2 emissions figure – it may be on your log book – if not try http://www.vcacarfueldata.org.uk
To find the scale fuel charge for each car – http://www.gov.uk/fuel-scale-charge
Calculate the fuel scale charge for each car for each VAT return period.
Create a nominal journal – Dr. – VAT account
Cr. – Fuel Account
When asked whether Input or Output tax – select Output. This will put the VAT amount into Box 1 which is correct.
Mileage records do not need to be kept but make a note of car reg no and the CO2 figure on the journal.