semsley wrote:

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As far as I am aware, Mr VATman will accept unofficial receipts (ie like you get for petrol from supermarkets unless you ask for a VAT receipt) provided they are under £25.

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The £25 ruling can sometimes be confused with the ruling for simplified or modified VAT invoices.

The following quotes should clarify:- 

 

***If you are treating as input tax the VAT on goods or services supplied to you:

(a) the invoice can be made out to an employee for subsistence expenses mentioned in paragraph 12.1 and for petrol (see Notice 700/64 Motoring expenses); and

(b) you do not need a VAT invoice for some types of supply if your total expenditure for each taxable supply was £25 or less (including VAT). You must be sure that the supplier was registered for VAT. If in doubt, check with our National Advice Service. This applies to:

• telephone calls from public or private telephones;
• purchases through coin-operated machines;
• car-park charges (on-street parking meters are not subject to VAT); and
• a single or return toll charge.***
  

  
  

***Simplified VAT invoices

If you make retail sales and you make a sale of goods or services for £250 or less including VAT, then when a customer asks for a VAT invoice, you can issue a simplified VAT invoice that only needs to show:

·       the seller's name and address

·       the seller's VAT registration number

·       the time of supply (tax point)

·       a description of the goods or services

Also, if the supply includes items at different VAT rates then for each different VAT rate, your simplified VAT invoice must also show:

·       the total price including VAT

·       the VAT rate applicable to the item

If you accept credit cards, then you can create a less detailed invoice by adapting the sales voucher you give the cardholder when you make the sale. It must show the information described in the six bullets above

You do need to keep copies of any less detailed invoices you issue.

Modified VAT invoices

If you sell goods or services for more than £250 including VAT, and your customer agrees, you may issue a modified VAT invoice showing the VAT-inclusive value of each standard-rated or reduced rate item.

The modified VAT invoice must show separately the total:

·       VAT-inclusive value of each standard-rated or reduced rate item

·       VAT payable on those items

·       value of those items excluding VAT

·       value of any zero-rated items included on the invoice

·       value of any exempt items included on the invoice

The modified invoice must otherwise show the details required on a full VAT invoice.

If you are unable to offer either a simplified or modified invoice, you must issue a full VAT invoice.****

RobH wrote:

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Thanks Julie, that has cleared that up. So in essence the £25 rule with no vat invoice is for things you cannot easily get a receipt for, like parking meters etc. It is also acceptable for an employee to hand in a petrol vat receipt for under £25.

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 Hi Rob

I read that part to mean that the invoice can be made out to an employee when it is for subsistence or motoring expenses - whereas normally the invoice must be made out to the business.

Julie.

RobH wrote:

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Yes I agree but I assumed that a petrol receipt not made out to anybody from the employee would also be acceptable (on the grounds that they just give you a printed one normally). Either way the vat receipt needs to be there.

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I think it's one of those statements which in itself can cause confusion; as in, when was the last time you can remember getting a receipt made out to anyone when buying fuel.  Although, having said that, credit card details are shown on fuel receipts which in turn could prove who purchased the supply - but regardless of who buys the supply there really isn't any excuse not to have the receipt as one is always readily available on request.  In general fuel receipts would fall into the simplified category as my understanding is that the £25 ruling only applies to goods and/or services where one cannot easily obtain a receipt.