Receipts for Mileage or not??

[gezzagregz]

Hi everyone,

After ringing around some brollies, some say i need to sendin petrol receipts and others don't. Whos right?

cheers

[TheFaQQer]

Whoever you are with is right.

They set their own expenses policy - as an employee, you need to comply with that, as well as with the HMRC guidelines.

[Nixon Williams]

Mileage receipts are only required if you are VAT registered AND you are not on the flat rate scheme, ie you claim some VAT back on the mileage.

You do need to keep a mileage log of each business journey made.

So if you are on the VAT Flat Rate Scheme, no receipts are required but you do need to keep a mileage log.

Alan

[gezzagregz]

Can you be on the flat rate scheme under a brollie??

so some brollies need receipts and some don't, its to do with the dispensation?

i wish hmrc would just set some rules in stone instead of giving different interpretations of what they mean!

[TheFaQQer]

HMRC rules are clear - you need to keep your receipts for business expenses, regardless of whether your employer has a dispensation or not.

Your employer may allow you to claim expenses which HMRC do not allow - in which case, you need to pay tax on the BIK. For example, private medical insurance, or a company car.

You are not registered for VAT at all as an umbrella employee.

[Bluebird]

Can you be on the flat rate scheme under a brollie??

so some brollies need receipts and some don't, its to do with the dispensation?

i wish hmrc would just set some rules in stone instead of giving different interpretations of what they mean!

VAT FRS doesn't come into the equation for contractors with brollies.

Dispensation is between the Brolly and HMRC - It has nothing to do with the relationship between the Contractor and the Brolly or the Contractor and HMRC.

The Brolly as the employer of the contractor may wish to see petrol reciepts to ensure the 40ppm thats being claimed is justifed - it doesn't go to HMRC although perhaps the brolly are doing something with the VAT element of it to make some cash - can't see how but there you go.

As always - any other expenses claimed MUST be backed up by reciepts to show to HMRC even if your brolly says you don't need them [ to show to the brolly ].

[VectraMan]

The Brolly as the employer of the contractor may wish to see petrol reciepts to ensure the 40ppm thats being claimed is justifed - it doesn't go to HMRC although perhaps the brolly are doing something with the VAT element of it to make some cash - can't see how but there you go.

Umbrellas can claim back the VAT on your expenses, that's why they need receipts. When I was with Parasol 2 years ago, you didn't have to send any receipts, but when the rules about needing receipts for mileage VAT claims came in (1st Jan 06 IIRC), Parasol started asking for them.

It doesn't benefit the contractor in any way, just a little earner for the umbrella.

[WindyAnna]

How the hell can you receipt your mileage costs when they don't cover petrol alone?!?

[Billy Pilgrim]

They barely cover petrol these days once you are over the 10K limit

[Sockpuppet]

Mileage receipts are only required if you are VAT registered AND you are not on the flat rate scheme, ie you claim some VAT back on the mileage.

You do need to keep a mileage log of each business journey made.

So if you are on the VAT Flat Rate Scheme, no receipts are required but you do need to keep a mileage log.

Alan

I assume that means you only need the receipts if you claim the VAT? I.e. no receipts if you are non flat rate and not claiming the vat.

Mainly becuase I do 1200 miles a week some weeks and at 40p/mile there is no way on gods green earth that get £480 quid of diesel a week.