Keeping petrol receipts - even though you claim mileage allowance

[psychocandy]

Even though I claim mileage allowance, accountant has said I need to keep receipts for petrol just to prove I did physically put fuel in the car !!!!! Dont understand that since I'm flat rate registered as well so VAT doesnt come into it either.

Oh well, no big deal. Would have thought that if HMRC were concerned about the amount I claim for mileage they'd simply find out where my office was (i.e. home address) and find out where my client was !!!!!

Also, pity they waited two months before telling me this as well.....

[SneakySimon]

I agree

I am exactly the same - no one seems clear, I have had three differnt accountants with three differnt opinions.

I currently keep a detailed mileage log with distance as well as 'reason' as I do roughly 50/50 split of travelling to office as well as other offices etc.

[psychocandy]

If I should have been doing this, then maybe it is my fault partially, but, referring to my other post, just about sums my accountant up. Something else that has gone on for 2 months before anyone said anything to me.

It seems that unless I bring the subject up, no-one bothers. After all, I remember having the discussion when I first started with them, confirming that the 45p a mile thing was claimable but he never before mentioned that I needed to keep petrol receipts too....

It seems only to have become apparent when someone else in the office is dealing with my VAT return and happened to mention that I need to keep receipts !!!

[Craig@Clarity]

If you're on the flat rate VAT scheme claiming mileage there is no need to keep receipts. It doesn't support any claim or prove anything. If you were on the standard rate VAT scheme, you would need to keep petrol receipts which at least covers the VAT you'd claim on mileage. As the former applies, there's no need to retain receipts.

[northernladuk]

I thought the whole idea of reciepts was to prove you are doing the mileage you claim? Without them there is no way at all to confirm what you are claiming? At least if you can show you have spent at least £x when you put y miles in there is some basic correlation. Yes ok you can still fudge it but it stops people working from home and claiming 1000's of miles.

Also you cannot rely on your accountant to tell you what to claim. Yes you SHOULD be able to. I think we all agreed that in a number of threads on this but the defacto standard is you can't. It's your business and it is ultimately up to you to know so can't just sit there and wait for them to mess up I am afraid. I fell foul of this and learnt the hard way just as many other posters have. It is just the way it is.

[psychocandy]

I am exactly the same - no one seems clear, I have had three differnt accountants with three differnt opinions.

I currently keep a detailed mileage log with distance as well as 'reason' as I do roughly 50/50 split of travelling to office as well as other offices etc.

I can obviously see the need for keeping a log - after all HMRC have got every right to ask you to tell them what the mileage claim is for.

[psychocandy]

If you're on the flat rate VAT scheme claiming mileage there is no need to keep receipts. It doesn't support any claim or prove anything. If you were on the standard rate VAT scheme, you would need to keep petrol receipts which at least covers the VAT you'd claim on mileage. As the former applies, there's no need to retain receipts.

Exactly. I dont reclaim any VAT.

If I remember correctly, dont you reclaim an element of VAT from mileage claims if you're not flat rate?

[psychocandy]

I thought the whole idea of reciepts was to prove you are doing the mileage you claim? Without them there is no way at all to confirm what you are claiming? At least if you can show you have spent at least £x when you put y miles in there is some basic correlation. Yes ok you can still fudge it but it stops people working from home and claiming 1000's of miles.

Also you cannot rely on your accountant to tell you what to claim. Yes you SHOULD be able to. I think we all agreed that in a number of threads on this but the defacto standard is you can't. It's your business and it is ultimately up to you to know so can't just sit there and wait for them to mess up I am afraid. I fell foul of this and learnt the hard way just as many other posters have. It is just the way it is.

Yeh. But I do a round trip of 18 miles a day. The fact that I might put £85 worth of diesel in my motor proves nothing. I could have gone to Cornwall for the weekend.

Point being, I could stump up a receipt once a week for £85 possibly. Work from home every day, and make up a mileage claim of 20 miles a day to client site.

The receipt proves bugger all cos like I said, its not a company car and I could be driving to Cornwall for a holiday every weekend!!!!

I see what you mean about not relying on your accountant. Like you always say, its your business, your responsibility but since I'd already had this discussion about mileage allowances I fail to understand why the useless bugger hadnt said at the time about keeping receipts.

Also, I fail to see why a credit card statement doesnt provide at least basic proof if the HMRC are that bothered. For instance,

Tesco Petrol £85.

Do they really think I'm going to bother to fiddle 20 miles a day, work from home, never use my car otherwise, but then go and buy £85 worth of crisps, choc, and cat food from tescos petrol station just so it looks like I've bought fuel?

[Craig@Clarity]

Exactly. I dont reclaim any VAT.

If I remember correctly, dont you reclaim an element of VAT from mileage claims if you're not flat rate?

Yes it's a fraction. It's not a huge amount or the normal VAT rate amount. That's why being on the flat rate scheme is usually beneficial if that's all the expenses you have.

[Robot]

I thought the whole idea of reciepts was to prove you are doing the mileage you claim? Without them there is no way at all to confirm what you are claiming? At least if you can show you have spent at least £x when you put y miles in there is some basic correlation. Yes ok you can still fudge it but it stops people working from home and claiming 1000's of miles.

Think HMR&C, would use other records to confirm your business mileage, sales invoices, timesheets, mileage clocked on the car, sitting outside your house watching the car moving or not moving, asking the neighbours if the car moves everyday. End clients records showing you logging in to their system, or signing in every day for fire records.

Receipts show money was spent on fuel, but was it for your car?

Just thoughts