I have an employee claiming mileage allowance in their private car. They have provided fuel receipts for me to claim VAT. Fine done all that. But where and how do I tag the fuel receipts in case HMRC need to see them? They are not an expense of the company, so receipt hub doesn’t work.
You don’t need the fuel receipts to claim VAT on mileage allowance - the mileage rate of 45p covers an element of fuel, on which VAT is recoverable. You need to check the advisory fuel rates for the particular car for the VAT quarter in question to determine the rate applicable and therefore VAT recoverable.
Or are you actually claiming the cost of the fuel?
I have checked the advisory fuel rate and done the paperwork to recover the VAT (and pay the employee their mileage claim. Everything I have read states that you can only reclaim the VAT element of the mileage claim if you have the employee’s VAT receipts for fuel purchased around the time of the journey. I have those receipts, but how do I store them in Quickfile? I stated that they are not an expense of the company.
How did you handle recovering the VAT in QuickFile? If you made a purchase for the fuel element of the mileage allowance then you could attach the receipts to that purchase, if you just did it with a manual adjustment then I guess all you can do is upload them to the document manager with sensible file names and maybe in a specific custom folder for fuel receipts.
I used this method
VAT on Approved Mileage Claims / Advisory Fuel Rate - #2 by Joe
The company did not buy the fuel. The employee bought it. Is it right that the company needs the employee’s receipts to reclaim the VAT?
Not if you are paying mileage rates, only if you are reimbursing for actual fuel purchased by the employee. If you are paying a rate per mile, the evidence needed is as below:
And here’s the link VIT55400 - Motoring expenses: road fuel and the private use of cars - HMRC internal manual - GOV.UK
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