Bet they haven't reduced the car rent

and more than likely he pays the fuel or gets the VAT back off it

How does that work exactly?

If a driver is on a split bag or a deal that that also takes in splitting the fuel cost, is it right that the proprietor claims (all) of the VAT back (and keeps it), when in actual fact they are only entitled to half? On that basis shouldn't the driver should get back the other half of the VAT - or am I missing something?

Possibly John, but AL drivers are defiantly not getting it back.

Al drivers aren't on split purse they RENT their cars at £350 a week

How does that work exactly?

If a driver is on a split bag or a deal that that also takes in splitting the fuel cost, is it right that the proprietor claims (all) of the VAT back (and keeps it), when in actual fact they are only entitled to half? On that basis shouldn't the driver should get back the other half of the VAT - or am I missing something?

The driver could only claim their share of the VAT if they are VAT registered. It would be for the Revenue & Customs to check whether Addison Lee has over claimed its contributions to VAT thus entitling them a rebate. There may well be an opportunity to create mischief for Addison Lee but I doubt that any driver is entitled to any of the VAT reclaimed.

Thanks Toots I understand the VAT situation.

I am thinking that the VAT having being reclaimed is also in essence part of a 60/40 split that is a part of the pot. The agreement is basically a 60/40 split of what is left after all expenses - it is only the fuel being an expence - not the VAT as the VAT comes back. The driver imo is due a share of the reclaimed VAT, as he should only be charged on actual fuel costs.

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Toots is right

I am thinking that it is only actual expences that come out of the agreement. The driver has VAT (via fuel) included in the total cost of the expences - the VAT eventually comes back! To make the agreement a true split -then the driver is entitled to a percentage of the returned VAT.

Only if the driver is vat registered....imo

I would say that the agreement/contract would supercede anything else.

When it has also been raised as to whether i.e "They are employed" or "Entitled national Minimum/living wage/holidays" then I think that it should be talked out.

Let us say that an office has an agreement in place that there is a 60/40 share of the takings - once the fuel is stripped out, as it is a cost. It can imo be argued that they (the office) should receive the higher percentage as maintenance is their responsibility/cost, which is fair enough.

We all know that if we received the VAT back from our fuel then we would all have more money in the pot/pocket e.g fuel @ £1.07 per litre, say £40 a time, is an additional £6.67 out of your pocket/takings and then claimed back. That could easily be done say 3 times a week, meaning that just over £20 a week is being claimed back by the operator i.e £1040 per year/per vehicle.

To simplify it let us say that the fuel is £5 a gallon = it is now a cost! However, out of that the operator gets back say £1 a gallon as a VAT return - the actual cost in reality is only £4 - the driver is not then getting his/her fair share as per agreement as the operator has now put it in his/her takings.I would guess estimate that it could be worth £400/500 ish per year to a driver