Hi everyone, I have a VAT question and would be grateful for some assistance.
Every month my client gives me a summary of his expenses and always includes mileage at 40pence per mile. He always gives me the receipts and invoices for all the other expenses, but for mileage I never have anything. I reclaim the VAT based on the relevant rate. However do I not have any documentation to backup the mileage expense. Someone mentioned that I should have a receipt, but how would this work in practice? Many thanks
When reclaiming VAT on mileage allowances, you need to ensure you obtain a VAT receipt(s) from your client covering the expense claimed. The receipt needs to be dated on or before the date the journey was taken.
You need to make sure your client ask's for a VAT receipt when purchasing petrol. This is the receipt with the shop's VAT registration number on it. Your client will always get a standard till receipt, but he may not always get the VAT receipt. A till receipt without a VAT number is not sufficient for HMRC.
