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Finances / Finanzen » uk.finance » Company Expenses - Petrol VAT Nonsense
| Company Expenses - Petrol VAT Nonsense [message #375841] |
Mi, 29 März 2006 17:10 |
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My mate uses his own car for business - he claims his mileage back at
a fixed rate per mile which he puts on an expense claim at the end of
the month.
He has now been told that he has to include "a receipt" for his petrol
with each claim otherwise the company cannot claim the VAT back -
apparently some European Court ruling.
The company are happy with the current arrangement, it is apparently
bureaucracy for the sake of bureaucracy and helps to keep the bean
counters in post.
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| Re: Company Expenses - Petrol VAT Nonsense [message #375854 ] |
Mi, 29 März 2006 18:10 |
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<who me [at] privacy.net> wrote in message
news:ge8l22tlgnd345cdf69e8bfetm9ip4ed25 [at] 4ax.com...
> My mate uses his own car for business - he claims his mileage back at
> a fixed rate per mile which he puts on an expense claim at the end of
> the month.
>
> He has now been told that he has to include "a receipt" for his petrol
> with each claim otherwise the company cannot claim the VAT back -
> apparently some European Court ruling....
Can a company claim back vat on petrol purchased for an employee's *private*
vehicle?
I thought it was only petrol that was put into a *company* vehicle which
could be vat-reclaimed.
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| Re: Company Expenses - Petrol VAT Nonsense [message #375857 ] |
Mi, 29 März 2006 18:23 |
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On Wed, 29 Mar 2006 16:10:46 +0100, who me [at] privacy.net wrote:
>My mate uses his own car for business - he claims his mileage back at
>a fixed rate per mile which he puts on an expense claim at the end of
>the month.
>
>He has now been told that he has to include "a receipt" for his petrol
>with each claim otherwise the company cannot claim the VAT back -
>apparently some European Court ruling.
>
Yes, this is the case.
Companies have always been able to claim back the VAT element of
mileage claims, and previously needed no receipts to do so.
Now, the EU have decided that receipts are necessary for ALL VAT
reclaims.
For the purposes of mileage claims, what this means is that you must
provide VAT receipts which show a total amount of VAT paid on fuel
that is at least as much as the company is claiming back on those
claims.
>The company are happy with the current arrangement, it is apparently
>bureaucracy for the sake of bureaucracy and helps to keep the bean
>counters in post.
I think so too.
But I am now asking for a VAT receipt every time I fill up. Most
filling stations always did ask if you wanted a VAT receipt anyhow, so
it is just a case of saying "yes please", and then keeping it.
--
Alex Heney, Global Villager
Patience is a virtue, it's just not one of my better virtues
To reply by email, my address is alexATheneyDOTplusDOTcom
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| Re: Company Expenses - Petrol VAT Nonsense [message #375863 ] |
Mi, 29 März 2006 18:32 |
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"Alex Heney" <me8 [at] privacy.net> wrote in message
news:itcl225coqbha3j2od1bi0nv1p7nk6gvkg [at] 4ax.com...
> Yes, this is the case.
>
> Companies have always been able to claim back the VAT element of
> mileage claims...
So if an employee claims 35p/mile, how much of that 35p is assumed to be
petrol? 10p perhaps which would contain about 1.49p of vat?
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| Re: Company Expenses - Petrol VAT Nonsense [message #375865 ] |
Mi, 29 März 2006 18:33 |
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On Wed, 29 Mar 2006 17:10:51 +0100, "Adrian Boliston"
<adrian [at] boliston.co.uk> wrote:
><who me [at] privacy.net> wrote in message
>news:ge8l22tlgnd345cdf69e8bfetm9ip4ed25 [at] 4ax.com...
>
>> My mate uses his own car for business - he claims his mileage back at
>> a fixed rate per mile which he puts on an expense claim at the end of
>> the month.
>>
>> He has now been told that he has to include "a receipt" for his petrol
>> with each claim otherwise the company cannot claim the VAT back -
>> apparently some European Court ruling....
>
>Can a company claim back vat on petrol purchased for an employee's *private*
>vehicle?
Yes.
>I thought it was only petrol that was put into a *company* vehicle which
>could be vat-reclaimed.
>
the VAT element of mileage allowances can be reclaimed.
--
Alex Heney, Global Villager
Some minds should be cultivated, others plowed under...
To reply by email, my address is alexATheneyDOTplusDOTcom
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| Re: Company Expenses - Petrol VAT Nonsense [message #375873 ] |
Mi, 29 März 2006 19:14 |
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In news:48vpscFlu7cbU1 [at] individual.net,
Adrian Boliston <adrian [at] boliston.co.uk> typed:
> <who me [at] privacy.net> wrote in message
> news:ge8l22tlgnd345cdf69e8bfetm9ip4ed25 [at] 4ax.com...
>
>> My mate uses his own car for business - he claims his mileage back at
>> a fixed rate per mile which he puts on an expense claim at the end of
>> the month.
>>
>> He has now been told that he has to include "a receipt" for his
>> petrol with each claim otherwise the company cannot claim the VAT
>> back - apparently some European Court ruling....
>
> Can a company claim back vat on petrol purchased for an employee's
> *private* vehicle?
>
> I thought it was only petrol that was put into a *company* vehicle
> which could be vat-reclaimed.
Yes, the company can claim the VAT back as long as the driver/owner is only
claiming back the Approved rate and produces VAT receipts along with the
expenses claim.
He would also have to keep a mileage log book, showing the business mileage
breakout.
The company then has to pay the Car Fuel Benefit as set out below.
Where the cost of ALL fuel for private use is borne by the employee, the
fuel benefit is NIL.
Otherwise, the taxable benefit is calculated as the car benefit percentage
of £14,400 and VAT becomes payable as follows:
upto 1400cc Petrol £40.66 Diesel £38.72
1401-2000cc Petrol £51.53 Diesel £38.72
Over 2000cc Petrol 75.66 Diesel £49.30
This is what I do for my own company.
--
Jason Russell
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| Re: Company Expenses - Petrol VAT Nonsense [message #375877 ] |
Mi, 29 März 2006 20:17 |
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"Alex Heney" <me8 [at] privacy.net> wrote in message
news:itcl225coqbha3j2od1bi0nv1p7nk6gvkg [at] 4ax.com...
> For the purposes of mileage claims, what this means is that you must
> provide VAT receipts which show a total amount of VAT paid on fuel
> that is at least as much as the company is claiming back on those
> claims.
Is the date important? ie can the petrol receipt be several days/weeks after the
business mileage, or should it be before?
--
Andy
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| Re: Company Expenses - Petrol VAT Nonsense [message #375878 ] |
Mi, 29 März 2006 20:38 |
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<who me [at] privacy.net> wrote in message
news:ge8l22tlgnd345cdf69e8bfetm9ip4ed25 [at] 4ax.com...
> My mate uses his own car for business - he claims his mileage back at
> a fixed rate per mile which he puts on an expense claim at the end of
> the month.
>
> He has now been told that he has to include "a receipt" for his petrol
> with each claim otherwise the company cannot claim the VAT back -
> apparently some European Court ruling.
>
> The company are happy with the current arrangement, it is apparently
> bureaucracy for the sake of bureaucracy and helps to keep the bean
> counters in post.
Yes that's correct , up until last year the vat was reclaimable without a
receipt on mileage allowance unfortunately the EU said it wasn't an
acceptable practice
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| Re: Company Expenses - Petrol VAT Nonsense [message #375879 ] |
Mi, 29 März 2006 20:39 |
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"Adrian Boliston" <adrian [at] boliston.co.uk> wrote in message
news:48vpscFlu7cbU1 [at] individual.net...
> <who me [at] privacy.net> wrote in message
> news:ge8l22tlgnd345cdf69e8bfetm9ip4ed25 [at] 4ax.com...
>
>> My mate uses his own car for business - he claims his mileage back at
>> a fixed rate per mile which he puts on an expense claim at the end of
>> the month.
>>
>> He has now been told that he has to include "a receipt" for his petrol
>> with each claim otherwise the company cannot claim the VAT back -
>> apparently some European Court ruling....
>
> Can a company claim back vat on petrol purchased for an employee's
> *private* vehicle?
>
> I thought it was only petrol that was put into a *company* vehicle which
> could be vat-reclaimed.
No any fuel that is used within the context of work which you get reimbursed
for
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| Re: Company Expenses - Petrol VAT Nonsense [message #375881 ] |
Mi, 29 März 2006 20:42 |
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"Adrian Boliston" <adrian [at] boliston.co.uk> wrote in message
news:48vr4pFm55mlU1 [at] individual.net...
> "Alex Heney" <me8 [at] privacy.net> wrote in message
> news:itcl225coqbha3j2od1bi0nv1p7nk6gvkg [at] 4ax.com...
>
>> Yes, this is the case.
>>
>> Companies have always been able to claim back the VAT element of
>> mileage claims...
>
> So if an employee claims 35p/mile, how much of that 35p is assumed to be
> petrol? 10p perhaps which would contain about 1.49p of vat?
doesnt sound a lot but if the employee does 40000 miles a year it works out
around £590.00 per employee per year
>
>
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| Re: Company Expenses - Petrol VAT Nonsense [message #375890 ] |
Mi, 29 März 2006 22:29 |
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On Wed, 29 Mar 2006 18:38:12 GMT, "Steve Robinson"
<steve [at] colevalleyinteriors.co.uk> wrote:
><who me [at] privacy.net> wrote in message
>news:ge8l22tlgnd345cdf69e8bfetm9ip4ed25 [at] 4ax.com...
>> My mate uses his own car for business - he claims his mileage back at
>> a fixed rate per mile which he puts on an expense claim at the end of
>> the month.
>>
>> He has now been told that he has to include "a receipt" for his petrol
>> with each claim otherwise the company cannot claim the VAT back -
>> apparently some European Court ruling.
>>
>> The company are happy with the current arrangement, it is apparently
>> bureaucracy for the sake of bureaucracy and helps to keep the bean
>> counters in post.
>
>Yes that's correct , up until last year the vat was reclaimable without a
>receipt on mileage allowance unfortunately the EU said it wasn't an
>acceptable practice
I know it's an EU ruling and we don't have a choice but it really does
seem very peverse. The normal reason for requiring a VAT receipt is
to prove that VAT has been paid but, in the case of petrol, there's no
way of buying it without VAT and no way of driving a petrol car on a
business journey without using petrol, so the fact that a journey was
made is itself evidence of the VAT expenditure.
Providing a VAT receipt doesn't add anything positive to the evidence
that a business journey has been made because any particular receipt
may well refer to a purchase made entirely for private mileage.
Does anyone know if there is any reasoning behind the decision?
Mike.
--
Entia non sunt multiplicanda praeter necessitatem
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| Re: Company Expenses - Petrol VAT Nonsense [message #375893 ] |
Mi, 29 März 2006 22:55 |
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"Mike" <mike [at] kempston.net> wrote in message
news:75rl22l9b1mfkgt9rc7i61brbakdvhj9co [at] news.kempston.net...
> On Wed, 29 Mar 2006 18:38:12 GMT, "Steve Robinson"
> <steve [at] colevalleyinteriors.co.uk> wrote:
>
>><who me [at] privacy.net> wrote in message
>>news:ge8l22tlgnd345cdf69e8bfetm9ip4ed25 [at] 4ax.com...
>>> My mate uses his own car for business - he claims his mileage back at
>>> a fixed rate per mile which he puts on an expense claim at the end of
>>> the month.
>>>
>>> He has now been told that he has to include "a receipt" for his petrol
>>> with each claim otherwise the company cannot claim the VAT back -
>>> apparently some European Court ruling.
>>>
>>> The company are happy with the current arrangement, it is apparently
>>> bureaucracy for the sake of bureaucracy and helps to keep the bean
>>> counters in post.
>>
>>Yes that's correct , up until last year the vat was reclaimable without a
>>receipt on mileage allowance unfortunately the EU said it wasn't an
>>acceptable practice
>
> I know it's an EU ruling and we don't have a choice but it really does
> seem very peverse. The normal reason for requiring a VAT receipt is
> to prove that VAT has been paid but, in the case of petrol, there's no
> way of buying it without VAT and no way of driving a petrol car on a
> business journey without using petrol, so the fact that a journey was
> made is itself evidence of the VAT expenditure.
>
> Providing a VAT receipt doesn't add anything positive to the evidence
> that a business journey has been made because any particular receipt
> may well refer to a purchase made entirely for private mileage.
>
> Does anyone know if there is any reasoning behind the decision?
>
> Mike.
>
The eu argument was that private individuals cannot charge vat so the
companies cannot therefore reclaim it , if they present a receipt to the
company then it is assumed that the petrol was bought on behalf of the
company and not charged to the company one is vat reclaimable the other
isn't
Basically Brussels being stupid
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| Re: Company Expenses - Petrol VAT Nonsense [message #375895 ] |
Mi, 29 März 2006 22:58 |
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In article <ouAWf.44318$wl.39364 [at] text.news.blueyonder.co.uk>, Steve
Robinson <steve [at] colevalleyinteriors.co.uk> writes
>Yes that's correct , up until last year the vat was reclaimable without
>a receipt on mileage allowance unfortunately the EU said it wasn't an
>acceptable practice
And they know all about acceptable practices don't they, how long ago
was the last time the accounts were signed off?
Mike
--
Michael Swift We do not regard Englishmen as foreigners.
Kirkheaton We look on them only as rather mad Norwegians.
Yorkshire Halvard Lange
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| Re: Company Expenses - Petrol VAT Nonsense [message #375899 ] |
Mi, 29 März 2006 23:09 |
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"Mike" <mike [at] kempston.net> wrote in message
news:75rl22l9b1mfkgt9rc7i61brbakdvhj9co [at] news.kempston.net...
> On Wed, 29 Mar 2006 18:38:12 GMT, "Steve Robinson"
> <steve [at] colevalleyinteriors.co.uk> wrote:
>
>><who me [at] privacy.net> wrote in message
>>news:ge8l22tlgnd345cdf69e8bfetm9ip4ed25 [at] 4ax.com...
>>> My mate uses his own car for business - he claims his mileage back at
>>> a fixed rate per mile which he puts on an expense claim at the end of
>>> the month.
>>>
>>> He has now been told that he has to include "a receipt" for his petrol
>>> with each claim otherwise the company cannot claim the VAT back -
>>> apparently some European Court ruling.
>>>
>>> The company are happy with the current arrangement, it is apparently
>>> bureaucracy for the sake of bureaucracy and helps to keep the bean
>>> counters in post.
>>
>>Yes that's correct , up until last year the vat was reclaimable without a
>>receipt on mileage allowance unfortunately the EU said it wasn't an
>>acceptable practice
>
> I know it's an EU ruling and we don't have a choice but it really does
> seem very peverse. The normal reason for requiring a VAT receipt is
> to prove that VAT has been paid but, in the case of petrol, there's no
> way of buying it without VAT and no way of driving a petrol car on a
> business journey without using petrol, so the fact that a journey was
> made is itself evidence of the VAT expenditure.
You could have gone by train.
(It doens't matter how impractical this is for your scenario,
there will be some for which it is)
tim
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| Re: Company Expenses - Petrol VAT Nonsense [message #375900 ] |
Mi, 29 März 2006 23:18 |
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> My mate uses his own car for business - he claims his mileage back at
> a fixed rate per mile which he puts on an expense claim at the end of
> the month.
> He has now been told that he has to include "a receipt" for his petrol
> with each claim otherwise the company cannot claim the VAT back
I`m in a similar situation, except that its my car, i`m based at a
fixed location, don`t get any car allowance etc other than mileage
expenses if i`m required to travel to another office for training /
meetings etc (and even then its only 22p/mile !)
The company are simply refusing to pay any expense claims without a
VAT receipt.
--
--- Please add "newsgroup" in the subject of any personal replies ---
--- My anti-spam address has "ngspamtrap" & [at] btinternet.com in it ---
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| Re: Company Expenses - Petrol VAT Nonsense [message #375901 ] |
Mi, 29 März 2006 23:29 |
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"Mike" <mike [at] kempston.net> wrote in message
news:75rl22l9b1mfkgt9rc7i61brbakdvhj9co [at] news.kempston.net...
> I know it's an EU ruling and we don't have a choice but it really does
> seem very peverse. The normal reason for requiring a VAT receipt is
> to prove that VAT has been paid but, in the case of petrol, there's no
> way of buying it without VAT....
I wonder if there are any tiny one pump filling stations with turnover below
the vat registration threshold? ;-)
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| Re: Company Expenses - Petrol VAT Nonsense [message #375902 ] |
Mi, 29 März 2006 23:33 |
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On Wed, 29 Mar 2006 23:09:37 +0200, "tim \(in sweden\)"
<tim_in_sweden2005 [at] yahoo.co.uk> wrote:
>"Mike" <mike [at] kempston.net> wrote in message
>news:75rl22l9b1mfkgt9rc7i61brbakdvhj9co [at] news.kempston.net...
>> On Wed, 29 Mar 2006 18:38:12 GMT, "Steve Robinson"
>> <steve [at] colevalleyinteriors.co.uk> wrote:
>>
>>><who me [at] privacy.net> wrote in message
>>>news:ge8l22tlgnd345cdf69e8bfetm9ip4ed25 [at] 4ax.com...
>>>> My mate uses his own car for business - he claims his mileage back at
>>>> a fixed rate per mile which he puts on an expense claim at the end of
>>>> the month.
>>>>
>>>> He has now been told that he has to include "a receipt" for his petrol
>>>> with each claim otherwise the company cannot claim the VAT back -
>>>> apparently some European Court ruling.
>>>>
>>>> The company are happy with the current arrangement, it is apparently
>>>> bureaucracy for the sake of bureaucracy and helps to keep the bean
>>>> counters in post.
>>>
>>>Yes that's correct , up until last year the vat was reclaimable without a
>>>receipt on mileage allowance unfortunately the EU said it wasn't an
>>>acceptable practice
>>
>> I know it's an EU ruling and we don't have a choice but it really does
>> seem very peverse. The normal reason for requiring a VAT receipt is
>> to prove that VAT has been paid but, in the case of petrol, there's no
>> way of buying it without VAT and no way of driving a petrol car on a
>> business journey without using petrol, so the fact that a journey was
>> made is itself evidence of the VAT expenditure.
>
>You could have gone by train.
>
>(It doens't matter how impractical this is for your scenario,
>there will be some for which it is)
That's a fair point. But I'm still at a loss to understand how a VAT
receipt for petrol is any evidence at all that a car was used for the
business journey. The receipt could have been for petrol purchased
for private use, so it's value as evidence is nil.
Mike.
--
Entia non sunt multiplicanda praeter necessitatem
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| Re: Company Expenses - Petrol VAT Nonsense [message #375906 ] |
Do, 30 März 2006 00:14 |
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On Wed, 29 Mar 2006 17:32:24 +0100, "Adrian Boliston"
<adrian [at] boliston.co.uk> wrote:
>"Alex Heney" <me8 [at] privacy.net> wrote in message
>news:itcl225coqbha3j2od1bi0nv1p7nk6gvkg [at] 4ax.com...
>
>> Yes, this is the case.
>>
>> Companies have always been able to claim back the VAT element of
>> mileage claims...
>
>So if an employee claims 35p/mile, how much of that 35p is assumed to be
>petrol? 10p perhaps which would contain about 1.49p of vat?
>
I claim at the maximum HMRC approved rates (I won my own company),
which is 40p/mile for the first 10,000, then 25p/mile.
My accountants suggest that rather than trying to calculate exactly, a
simple rule, that HMRC are known to accept, is to reclaim 1p/mile as
input VAT.
In the years since I have been contracting, my mileage claims over the
year have varied from about 6,500 miles (this year) up to 25,000
miles. This year is the first I will not have exceeded 10,000 miles.
So even this year, that is £965 reclaimed from the VAT man.
--
Alex Heney, Global Villager
Computer - A device designed to speed and automate errors.
To reply by email, my address is alexATheneyDOTplusDOTcom
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| Re: Company Expenses - Petrol VAT Nonsense [message #375907 ] |
Do, 30 März 2006 00:27 |
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"Michael Swift" <mike.swift [at] yeton.co.uk> wrote in message
news:8okn9JAGTvKEFwu5 [at] ntlworld.com...
> In article <ouAWf.44318$wl.39364 [at] text.news.blueyonder.co.uk>, Steve
> Robinson <steve [at] colevalleyinteriors.co.uk> writes
>>Yes that's correct , up until last year the vat was reclaimable without
>>a receipt on mileage allowance unfortunately the EU said it wasn't an
>>acceptable practice
>
> And they know all about acceptable practices don't they, how long ago
> was the last time the accounts were signed off?
>
> Mike
>
Do as we say not as we do
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| Re: Company Expenses - Petrol VAT Nonsense [message #375908 ] |
Do, 30 März 2006 00:26 |
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On Wed, 29 Mar 2006 19:17:50 +0100, "Andy Pandy"
<spam8times [at] wonderful.spam.invalid> wrote:
>
>"Alex Heney" <me8 [at] privacy.net> wrote in message
>news:itcl225coqbha3j2od1bi0nv1p7nk6gvkg [at] 4ax.com...
>> For the purposes of mileage claims, what this means is that you must
>> provide VAT receipts which show a total amount of VAT paid on fuel
>> that is at least as much as the company is claiming back on those
>> claims.
>
>Is the date important? ie can the petrol receipt be several days/weeks after the
>business mileage, or should it be before?
I'm not sure.
I would expect that it should be before or the same date, but it may
be that it just has to be within the VAT period.
The actual regulations applying to this, and the HMRC VAT business
briefing (neither of which make the above question clear), are here:
<http://www.opsi.gov.uk/si/si2005/20053290.htm>
< http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPort alWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_Guides AndBusinessBriefs&propertyType=document&columns=1&am p;id=HMCE_PROD1_024832#P69_5662>
--
Alex Heney, Global Villager
He's not dead, Jim, he's just metabolically challenged.
To reply by email, my address is alexATheneyDOTplusDOTcom
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| Re: Company Expenses - Petrol VAT Nonsense [message #375909 ] |
Do, 30 März 2006 00:28 |
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On Wed, 29 Mar 2006 21:29:54 +0100, Mike <mike [at] kempston.net> wrote:
>On Wed, 29 Mar 2006 18:38:12 GMT, "Steve Robinson"
><steve [at] colevalleyinteriors.co.uk> wrote:
>
>><who me [at] privacy.net> wrote in message
>>news:ge8l22tlgnd345cdf69e8bfetm9ip4ed25 [at] 4ax.com...
>>> My mate uses his own car for business - he claims his mileage back at
>>> a fixed rate per mile which he puts on an expense claim at the end of
>>> the month.
>>>
>>> He has now been told that he has to include "a receipt" for his petrol
>>> with each claim otherwise the company cannot claim the VAT back -
>>> apparently some European Court ruling.
>>>
>>> The company are happy with the current arrangement, it is apparently
>>> bureaucracy for the sake of bureaucracy and helps to keep the bean
>>> counters in post.
>>
>>Yes that's correct , up until last year the vat was reclaimable without a
>>receipt on mileage allowance unfortunately the EU said it wasn't an
>>acceptable practice
>
>I know it's an EU ruling and we don't have a choice but it really does
>seem very peverse. The normal reason for requiring a VAT receipt is
>to prove that VAT has been paid but, in the case of petrol, there's no
>way of buying it without VAT and no way of driving a petrol car on a
>business journey without using petrol, so the fact that a journey was
>made is itself evidence of the VAT expenditure.
>
Which is basically why our government previously allowed the reclaim
without receipts.
>Providing a VAT receipt doesn't add anything positive to the evidence
>that a business journey has been made because any particular receipt
>may well refer to a purchase made entirely for private mileage.
>
>Does anyone know if there is any reasoning behind the decision?
I haven't seen anything more than is on the HMRC website.
--
Alex Heney, Global Villager
He's not dead, Jim, he's just metabolically challenged.
To reply by email, my address is alexATheneyDOTplusDOTcom
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| Re: Company Expenses - Petrol VAT Nonsense [message #375912 ] |
Do, 30 März 2006 01:12 |
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Mike wrote:
> That's a fair point. But I'm still at a loss to understand how a VAT
> receipt for petrol is any evidence at all that a car was used for the
> business journey. The receipt could have been for petrol purchased
> for private use, so it's value as evidence is nil.
That's not the point. In fact for someone who, say, does half his
mileage privately and half for business, any particular quantity of
petrol purchased could be consumed entirely on business miles, or
entirely on private miles, or any mix.
The purpose of the fuel VAT receipts is not to prove that business miles
have been done. That is not possible, only your own declaration does
that, backed up by your journey log.
The purpose is to demonstrate that at least enough fuel to burn on
your business miles has been purchased with VAT paid. So if your
car (being a guzzler) uses, say, 12p worth of fuel per mile (oh heck,
call it 11.75p), and if in fact you get paid at least that much per
mile, then 1.75p per mile of VAT may be reclaimed, and you must be
able to produce at least 11.75p worth of VAT receipts for fuel per
business mile you claim, for your business to be able to reclaim
1.75p worth of VAT from HMC.
The exercise is purely perfunctory, of course, since it is extremely
unlikely that you would obtain fuel from a non-VAT-registered supplier.
Or perhaps they're trying to target folk who use black market red diesel.
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| Re: Company Expenses - Petrol VAT Nonsense [message #375918 ] |
Do, 30 März 2006 01:48 |
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On Wed, 29 Mar 2006 22:29:17 +0100, "Adrian Boliston"
<adrian [at] boliston.co.uk> wrote:
>"Mike" <mike [at] kempston.net> wrote in message
>news:75rl22l9b1mfkgt9rc7i61brbakdvhj9co [at] news.kempston.net...
>
>> I know it's an EU ruling and we don't have a choice but it really does
>> seem very peverse. The normal reason for requiring a VAT receipt is
>> to prove that VAT has been paid but, in the case of petrol, there's no
>> way of buying it without VAT....
>
>I wonder if there are any tiny one pump filling stations with turnover below
>the vat registration threshold? ;-)
>
I don't think a turnover of less than £60,000 would provide sufficient
profit to be viable, given the retailer margin on each litre of fuel
is only a few pence.
--
Alex Heney, Global Villager
He who always plows a straight furrow is in a rut.
To reply by email, my address is alexATheneyDOTplusDOTcom
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| Re: Company Expenses - Petrol VAT Nonsense [message #375929 ] |
Do, 30 März 2006 08:40 |
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In article <281m22te22bfnag31ahc35mugp5nu9batn [at] 4ax.com>, Alex Heney
<me8 [at] privacy.net> writes
>I claim at the maximum HMRC approved rates (I won my own company),
Really. Lucky you.
How did you win it? Raffle ticket?
--
Mr X
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| Re: Company Expenses - Petrol VAT Nonsense [message #375934 ] |
Do, 30 März 2006 10:03 |
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On 30 Mar 2006 00:40:03 -0600, Mr X <Mr-X [at] privacy.net> wrote:
>In article <281m22te22bfnag31ahc35mugp5nu9batn [at] 4ax.com>, Alex Heney
><me8 [at] privacy.net> writes
>
>>I claim at the maximum HMRC approved rates (I won my own company),
>
>Really. Lucky you.
>
>How did you win it? Raffle ticket?
LOL!
I rely too much on my spell checker sometimes :-)
--
Alex Heney, Global Villager
RENTAL CAR: The only *TRUE* all-terrain vehicle.
To reply by email, my address is alexATheneyDOTplusDOTcom
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| Re: Company Expenses - Petrol VAT Nonsense [message #375964 ] |
Do, 30 März 2006 21:33 |
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Andy Pandy wrote:
> Is the date important? ie can the petrol receipt be several days/weeks
> after the business mileage, or should it be before?
It would normally be the same day or earlier.
If it was bought after the journey was made, then it couldn't have been used
to make that journey.
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| Re: Company Expenses - Petrol VAT Nonsense [message #375966 ] |
Do, 30 März 2006 21:28 |
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who me [at] privacy.net wrote:
> My mate uses his own car for business - he claims his mileage back at
> a fixed rate per mile which he puts on an expense claim at the end of
> the month.
>
> He has now been told that he has to include "a receipt" for his petrol
> with each claim otherwise the company cannot claim the VAT back -
> apparently some European Court ruling.
>
> The company are happy with the current arrangement, it is apparently
> bureaucracy for the sake of bureaucracy and helps to keep the bean
> counters in post.
The advice is correct.
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| Re: Company Expenses - Petrol VAT Nonsense [message #375967 ] |
Do, 30 März 2006 21:40 |
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Jonathan Bryce wrote:
> Andy Pandy wrote:
>
>> Is the date important? ie can the petrol receipt be several days/weeks
>> after the business mileage, or should it be before?
>
> It would normally be the same day or earlier.
>
> If it was bought after the journey was made, then it couldn't have been used
> to make that journey.
Not necessarily - if you rent a van they are usually supplied c/w full
tank of fuel, which you replace before you take the van back.
Obv in extreme cases this could be a week later than the actual journey.
Also, if you have recently filled a vehicle with fuel for private
mileage, then use it for business instead, you can't empty the tank into
containers to replace it with business fuel ;-)
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| Re: Company Expenses - Petrol VAT Nonsense [message #376073 ] |
Sa, 01 April 2006 12:56 |
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Alex Heney wrote:
> On Wed, 29 Mar 2006 16:10:46 +0100, who me [at] privacy.net wrote:
>
>
>>My mate uses his own car for business - he claims his mileage back at
>>a fixed rate per mile which he puts on an expense claim at the end of
>>the month.
>>
>>He has now been told that he has to include "a receipt" for his petrol
>>with each claim otherwise the company cannot claim the VAT back -
>>apparently some European Court ruling.
>>
>
>
> Yes, this is the case.
>
> Companies have always been able to claim back the VAT element of
> mileage claims, and previously needed no receipts to do so.
How weird. I get paid mileage at 40p a mile upto 10k miles, and 25p a
mile thereafter. Approved rates. Own car etc. So, any fuel I buy for
myself, I have to get a vat receipt, just in case at any point during
those 50 litres I buy, my company asks me to go and visit a client?
Cya
Simon
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| Re: Company Expenses - Petrol VAT Nonsense [message #376114 ] |
Sa, 01 April 2006 22:47 |
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On Sat, 01 Apr 2006 11:56:40 +0100, Simon Dean
<sjdean [at] simtext.plus.com> wrote:
>Alex Heney wrote:
>> On Wed, 29 Mar 2006 16:10:46 +0100, who me [at] privacy.net wrote:
>>
>>
>>>My mate uses his own car for business - he claims his mileage back at
>>>a fixed rate per mile which he puts on an expense claim at the end of
>>>the month.
>>>
>>>He has now been told that he has to include "a receipt" for his petrol
>>>with each claim otherwise the company cannot claim the VAT back -
>>>apparently some European Court ruling.
>>>
>>
>>
>> Yes, this is the case.
>>
>> Companies have always been able to claim back the VAT element of
>> mileage claims, and previously needed no receipts to do so.
>
>
>How weird. I get paid mileage at 40p a mile upto 10k miles, and 25p a
>mile thereafter. Approved rates. Own car etc. So, any fuel I buy for
>myself, I have to get a vat receipt, just in case at any point during
>those 50 litres I buy, my company asks me to go and visit a client?
>
If your company wants to be able to reclaim the VAT from now on, yes
(sort of). What the company actually needs is VAT receipts showing
payment of at least as much VAT as they want to reclaim.
If the company doesn't want to bother reclaiming the VAT, then no.
--
Alex Heney, Global Villager
Man who get hit by car, get that run down feeling
To reply by email, my address is alexATheneyDOTplusDOTcom
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