Car mileage claims - VAT receipts

February 2006

Do you or your employees claim mileage for driving your own cars for business journeys?

Unless you provide your employees with a company fuel card, credit or debit card or a fuel account at a garage, new legislation must be taken into account from the 1st January 2006 if you want to continue recovering VAT input tax on the fuel element.

To reclaim VAT you must have a VAT receipt for the purchase of the fuel. Make sure your employees are aware that they need to ask for a receipt when they buy fuel from now on - these receipts must be appended to their claim forms, otherwise any reclaim of VAT on the fuel element will be disallowed.