Fuel Expenses

[cojak]

Here's advice from a council...

It really isn't that difficult to google...

I just ask for and scan me receipts to the mileage.

[northernladuk]

Technically you dont need a receipt, you just need proof of expenditure if you are not claiming back any VAT. Bank or credit card statements will do just as well.

Cojacks link directly disputes this and I am dam sure I would feel happier with a fist full of reciepts than hoping that digging back thru my accounts will do.

Anyway, got other stuff to do and all I could find was the following from our very own BFCA's website as it happens... Haven't read it all as I have run out of time on this but here you go. Guess what I was told was to use common sense and keep them rather than some legislation

BFCA Info

Record Keeping

EIM31390 and Sections 229 and 230 ITEPA 2003 are clear about record keeping requirements, and it is essential to have "reasonable evidence" to support claims.

If your business journey is the same each day then you do not necessarily have to measure the mileage every day: measure once and record how many days you made the journey by recording the destination on your report sheet.

If you want the "belt and braces approach" , then keep all your fuel receipts and store them in an envelope per month. This adds weight to the evidence you are keeping that you incurred costs and made the journeys. For instance using a petrol station on the journey is very good evidence of the journey having taken place as the receipts has the name of the petrol station, date and time on it. You may think this is "overkill" but if an HMRC inspector really wanted to challenge the fact that you made the journey, what better evidence to have collected ?

[Lumiere]

Well I can't find what I thought was the case about keeping receipts to prove you are doing what you say in case of an investigation. I guess Cojacks link covers it

I believe Cojak's link is slightly off-topic
It is about keeping fuel VAT receipts when you are going to claim this VAT back.

[DaveB]

Cojacks link directly disputes this and I am dam sure I would feel happier with a fist full of reciepts than hoping that digging back thru my accounts will do.

Anyway, got other stuff to do and all I could find was the following from our very own BFCA's website as it happens... Haven't read it all as I have run out of time on this but here you go. Guess what I was told was to use common sense and keep them rather than some legislation

BFCA Info

Record Keeping

EIM31390 and Sections 229 and 230 ITEPA 2003 are clear about record keeping requirements, and it is essential to have "reasonable evidence" to support claims.

If your business journey is the same each day then you do not necessarily have to measure the mileage every day: measure once and record how many days you made the journey by recording the destination on your report sheet.

If you want the "belt and braces approach" , then keep all your fuel receipts and store them in an envelope per month. This adds weight to the evidence you are keeping that you incurred costs and made the journeys. For instance using a petrol station on the journey is very good evidence of the journey having taken place as the receipts has the name of the petrol station, date and time on it. You may think this is "overkill" but if an HMRC inspector really wanted to challenge the fact that you made the journey, what better evidence to have collected ?

Cojaks link is to a councils internal policy and actually says they only want a receipt for milage claims in excess of 250 miles. The BFCA quote you givce supports what I said. Technically you dont need a receipt, just proof of expenditure and a record of milage done unless you are claiming back the VAT.

[Lumiere]

You work from home a few days a week 40 miles x 2 x number of days you travelled there = easy money

What is stopping you do this? Might be a daft question if I can't find what I am looking for of course

You drive to Cornwall for a short break and then work from home for a few days, what stops you including your fuel receipt for the fuel you had burned in Cornwall in your mileage claim ? Same thing really.

I am sure they have means of investigating this - reconciling to your other expenses, speaking to your client, checking mileage between MOTs etc.

[cojak]

I believe Cojak's link is slightly off-topic
It is about keeping fuel VAT receipts when you are going to claim this VAT back.

No it isn't - I'm on FRS and my accountant still wants receipts. It is against fraud, apparently.

[northernladuk]

You drive to Cornwall for a short break and then work from home for a few days, what stops you including your fuel receipt for the fuel you had burned in Cornwall in your mileage claim ? Same thing really.

I am sure they have means of investigating this - reconciling to your other expenses, speaking to your client, checking mileage between MOTs etc.

Very true and on the flip side there are people that have work horse cars and wouldn't dream of doing much personal mileage and so their fraudlent work mileage still out weighs their reciepts for the claim so still get caught. It isn't infalible but something they may look at.

I guess it is about your aversion to risk and some common sense. You are right you can include the Cronwall trip but that would be making you even safer and harder for HMRC to string you up as you have evidence of your work AND personal mileage. Having a family car and only enough evidence to cover what you claim is going to raise some eyebrows as you should have some personal stuff on there as well?

Either way, getting a bit stuck in individual situations. Bottom line is technically you don't need to but common sense and good practice seems to say keep them.

No it isn't - I'm on FRS and my accountant still wants receipts. It is against fraud, apparently.

I would be much happier with my accountant erring on the side of caution and keeping me totally covered for all eventualities than one that tells me technically I don't have to and then walking off when the crap hits the fan I guess.

[Lumiere]

No it isn't - I'm on FRS and my accountant still wants receipts. It is against fraud, apparently.

"Under the new legislation, employers will only be able to claim back VAT from business mileage if each claim is supported with a valid VAT receipt for the fuel purchased. This is a change to the current practice which allows companies to recover VAT without the need to provide any supporting VAT documentation."

" If fuel receipts are not present the VAT element of the mileage claim will be reversed at an HMC&R inspection, forfeiting this amount and potentially incurring penalties for incorrect reporting."

Where does it say "employees will only be able to claim 0.40 per mile for business travel if each claim is supported with a valid VAT receipt for the fuel purchased" or "If fuel receipts are not present, the WHOLE claim will be reversed" ?

It is all about VAT ..

I'm on FRS too and my accountant does not want the receipts and my accountant can beat up your accountant.

[ASB]

Cojaks link is to a councils internal policy and actually says they only want a receipt for milage claims in excess of 250 miles. The BFCA quote you givce supports what I said. Technically you dont need a receipt, just proof of expenditure and a record of milage done unless you are claiming back the VAT.

Correct. The receipt is only required in support of VAT claims. Strictly all that is required is enough receipts to cover the VAT being reclaimed over the period it is being claimed for.

I won't start on my employers policy on the above; save for the fact that my car does 400 miles on a tank, I claim about 300 miles a month; each expense claim has to have a receipt for fuel if it includes mileage. Each claim can only include expense related to one project. Curiously I now spend rather more on Taxis.

Don't forget to claim up to 40p/25p on ones tax return if reimbursed at a lower rate. There are circumstances in which NOT claiming any mileage from an employer can be more cost effective if you happen to own the employer.

[cojak]

"Under the new legislation, employers will only be able to claim back VAT from business mileage if each claim is supported with a valid VAT receipt for the fuel purchased. This is a change to the current practice which allows companies to recover VAT without the need to provide any supporting VAT documentation."

" If fuel receipts are not present the VAT element of the mileage claim will be reversed at an HMC&R inspection, forfeiting this amount and potentially incurring penalties for incorrect reporting."

Where does it say "employees will only be able to claim 0.40 per mile for business travel if each claim is supported with a valid VAT receipt for the fuel purchased" or "If fuel receipts are not present, the WHOLE claim will be reversed" ?

It is all about VAT ..

I'm on FRS too and my accountant does not want the receipts and my accountant can beat up your accountant.

I'll go back and have a quiet world with the man, then...