Commuting also qualifies as private use for VAT purposes when many people work from home

The Supreme Court has ruled that commuting counts as private use, even if employees work from home.
X BV leased cars to its employees from 2011-2017 and argued that the flat-rate scheme for private use resulted in excessive VAT.
However, the court rejected this argument, stating that commuting is considered private use and that both fixed and variable expenses must be allocated to that use.
The fact that employees can work from home does not change the nature of their journeys to and from the office.
X BV and the Secretary of State plan to appeal, but the Supreme Court has found their appeals to be without merit.

Taxable transaction