Explanatory note

This Order, which comes into force on 1st December 1991, gives statutory effect to a long-standing administrative practice. The Order provides for road fuel bought by employees to be treated as being supplied to the employer where the employee is reimbursed by means of a mileage allowance or the actual amount paid. It will permit the same recovery of input tax in these cases as has previously been allowed under the arrangements of paragraph 16 of Appendix C of the VAT Guide.