VAT Receipts and Employee Mileage Claims

January 2006

HM Revenue & Customs has announced changes to the procedures for input VAT recovery by employers on employees’ mileage allowances. In future employees will have to produce a garage VAT receipt to support the claim for expenses made. Without this supporting receipt the employer will not be able to reclaim the input VAT on the fuel element of the expenses. The changes become effective from 1 January 2006.

Internet links:

To read the HMRC announcement go to:
Press release

Click here for full details of the changes:
Business Brief 22/05

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