VAT on Milage Claim

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BIG WAL
BIG WAL Registered Posts: 133 Dedicated contributor 🦉
Company pays 45p a mile to the director for business mileage using his own car. VAT can be reclaimed on the fuel element based on HMRC advisory fuel rates.

Question is whether all receipts for business fuel need to be kept ? I seem to recall something about only requiring receipts to cover the actual amount of input VAT being claimed.

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  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
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    BIG WAL wrote: »
    I seem to recall something about only requiring receipts to cover the actual amount of input VAT being claimed.
    Yep, you're right. Or at least, I think you are! ;) That's my understanding of it.
  • mc25
    mc25 Registered Posts: 232 Dedicated contributor 🦉
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    Yes if you are claiming the VAT element you are suppose to keep all the receipts to accompany the mileage.
  • payrollpro
    payrollpro Registered Posts: 427 Dedicated contributor 🦉
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    The rule is that as long as your petrol receipts for the quarter with at least as much VAT quoted as the amount of the claim its allowed. I used to have an agreement on 2p a mile to avoid all the silly scale charge calculations and this should be around 2.9p a mile now but again you total up the miles, work out the VAT and compare it to the total on the receipts and if necessary cap the claim at that total and tell the client to keep more receipts.
  • Gem7321
    Gem7321 Registered Posts: 1,438 Beyond epic contributor 🧙‍♂️
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    Agree with payrollpro you just have to provide receipts that sum at least the amount of the claim.
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