Tax/expenses advice - any HMRC here?

Hi
I’m hoping somebody can help with a situation that’s arisen.

I recently left a job where i incurred travel expenses in the form of mileage

I use my own vehicle at 45p pet mile as per hmrc guidelines

My ex employer states I need to provide receipts (by law) to claim the couple of hundred of miles I travelled and didn’t get chance to claim for.

As I understand as long as I can provide the number of miles I don’t need a receipt
I’ve offered to provide bank statements showing spends at petrol stations as I don’t have the receipts now

I’ve never had to produce receipts before

Am I to understand they are trying to reclaim vat ?
But that’s vat I paid ?

Anyway / hmrc website doesn’t say need receipts relating to business miles

Any help would be good to clarify

I dont work for HMRC, but if your previous employer is trying to recover VAT then you should be able to give them receipts (recent if needs be) that have sufficeint VAT to cover the VAT cost of your mileage claim. VAT works out at 2.5p a mile, can't remember the reason why.

If you have never had to provide receipts in the past then it would be hard for them to say you do now.
I have to provide fuel receipts and a mileage log for each business journey.
It’s quite normal for a firm to reclaim the VAT.

I work for HMRC although I'm now on the Customs side of things.

I also happen to do part time self employed job at the weekends and also claim the mileage rate.

My understanding is the same as yours..... by claiming the mileage rate rather than full costs it would be difficult to receipt - how much fuel in your tank is for business and how much for private....that's the point really, you couldn't possibly tell. So mileage log of some sort should be adequate - I just record mileage on the dates I work which coincides with my invoice dates.

That should be sufficient if you were ever subject to a review

Do not work for the HMRC but do own a Ltd Company. In 10 years I have never provided VAT receipts for business mileage. If I am claiming off another company as expenses, I just provide a mileage log, which is normally on the claims form for that organisation or online software if used. When not claiming off a client, I submit through my accountants software and again, just record journey details and Mileage, no receipts.

As stated your employer is just following the rules to reclaim VAT, check your contract or published policy. Having said that if you’ve never provided them before then custom and practice should take precedent. It really is no issue though to provide any old VAT fuel receipt I would have thought.

I’ve always had to submit petrol receipts when claiming expenses with my employer but when claiming the tax relief HRMC have only ever asked for an overall mileage figure and never any proof to back the mileage up. But I think the reason for this might well be that they may well submit my business miles to them but am not sure.

EDIT AGAIN!

Sorry, didn't read your OP properly on my phone. Your ex-employer is basically saying he won't/can't pay your mileage without fuel receipts?

Your entitlement to claim mileage is based on your employment contract (written and otherwise). Your ex-employer's right to reclaim VAT on mileage paid is an entirely separate issue. The two things are not connected (unless your contract/expenses policy said you get your mileage paid on production of fuel receipts.)

If they have told you "need to provide receipts (by law) to claim", that's a lie.

Unfortunately, as an ex-employee, your options are limited. The amounts involved are not worth suing for, I suspect.

ORIGINAL RESPONSE:

I think it’s technically correct that fuel receipts are required for VAT recovery on the fuel element of mileage payments - although it’s counterintuitive.

https://www.gov.uk/hmrc-internal-manuals/vat-input-tax/vit55400#Input_tax_when_employees_are_paid_a_milea ge_allowance

if you weren’t asked to retain and submit receipts at the time, it’s a bit odd and unreasonable to expect you to produce them after you’ve left!

I wonder how much VAT is at stake?

EDIT: it’s your former employer’s problem not yours. If they want to reclaim VAT on mileage they pay, they should have a system in place to collect receipts before they pay employees.

Over the years I have claimed the mileage from my Employers and even topped it up via HMRC and have never had to produce receipts for fuel.
If there is a requirement for this, then should you include receipts for servicing, MOT’s, insurance etc as VAT is applicable on these items I suspect as these all involve an element of expense when travelling for business purposes?

B

I think it might be two separate things here. To claim the Approved mileage rate HMRC would require you to maintain a business mileage record. It may however be that the company requires you to provide supporting receipts for their audit trail. Perhaps you could clarify with the company.

Details of the mileage scheme/rules are below

https://www.gov.uk/expenses-and-bene.../rules-for-tax

Isn’t the entire issue around the fact that you are now trying to claim expenses after you have left? So whatever your contract said or how you did things when employed may not have a bearing?

If it’s only a few hundred miles then you’d be looking at 3-5 receipts, I’m basing the numbers required on my own expenses claims.

If they now want receipts then give them some receipts, you must have friends and/or family who can provide a few or there was a thread here re McDonalds and how to obtain receipts so maybe look at that for ideas?