Incorrectly assumed VAT charged on monthly season ticket

[northernladuk]

Weird question. As others said, if you're on Flat then it makes no odds anyway.

Saying that, had an accountant a few years back (I binned him after few months) that used to tell me I had to keep receipts from petrol stations in case I got investigated for VAT. No idea where this came from because I was just claiming 45p mile like usual. IMHO **** all to do with how and where I got my fuel from but there we go. If HMRC think I'm not doing the journey at all then thats a different matter (and obviously fraudlent) but I would have thought invoice/timesheet highlighting days billing at site X would clear that one up.

He reckoned that it was to prove you were doing the miles for VAT purposes. Weird.

My last two accountants have told me I don't really need petrol VAT receipts but said if I don't mind the effort of sticking it in my wallet and throwing them in a bag when I get home there is no harm in keeping them. At worst I lose a couple of seconds of my life bagging them. There could be the chance that a big bag of receipts could make an investigation run a lot smoother by proving diligence so he won't be inclined to dig as hard. Time spent versus possible benefits seems a good deal so I still keep mine.

[Jessica@WhiteFieldTax]

Weird question. As others said, if you're on Flat then it makes no odds anyway.

Saying that, had an accountant a few years back (I binned him after few months) that used to tell me I had to keep receipts from petrol stations in case I got investigated for VAT. No idea where this came from because I was just claiming 45p mile like usual. IMHO **** all to do with how and where I got my fuel from but there we go. If HMRC think I'm not doing the journey at all then thats a different matter (and obviously fraudlent) but I would have thought invoice/timesheet highlighting days billing at site X would clear that one up.

He reckoned that it was to prove you were doing the miles for VAT purposes. Weird.

Actually, AFAIR, thats technically correct - but no one bothers in practice.

Logic is that if you are using HMRC advisory fuel rats to reclaim a vat element of the mileage rate, then you need enough receipts to cover the vat reclaimed. With most people on FRS it is more or less irrelevant.

[Contreras]

Weird question. As others said, if you're on Flat then it makes no odds anyway.

Saying that, had an accountant a few years back (I binned him after few months) that used to tell me I had to keep receipts from petrol stations in case I got investigated for VAT. No idea where this came from because I was just claiming 45p mile like usual. IMHO **** all to do with how and where I got my fuel from but there we go. If HMRC think I'm not doing the journey at all then thats a different matter (and obviously fraudlent) but I would have thought invoice/timesheet highlighting days billing at site X would clear that one up.

He reckoned that it was to prove you were doing the miles for VAT purposes. Weird.

From: VIT55400 - Motoring expenses:

... if the business can show that the employee has been reimbursed either:

• for their actual expenditure; or
• by way of a mileage allowance.

The business must also obtain and retain invoices for all fuel purchased by its employees.
...

HMRC accepts that the amount of the invoice in many cases will not match the input tax claim in respect of business fuel in any one claim period, particularly where fuel is purchased towards the end of the period.

Clearly a claim cannot be supported by a VAT invoice that is dated after the dates covered by the claim. This means, in practice, that it may be advisable for employers to arrange for their employees who use, or may use, their cars for business purposes to retain all fuel invoices.

Obviously not relevant for FRS though.

[TykeMerc]

I'm on FRS and keep my fuel receipts, but it's an old habit which I could get out of
The rationale behind hanging onto them was if ever challenged over doing the mileage it was evidence, belt and braces type of behaviour tbh.