In its Employer Bulletin for April, Revenue & Customs has clarified its requirements for VAT invoices to support employees' mileage allowance claims. It states that '... the new legislation does not mean that each claim from each employee must be supported by an invoice. It simply means that, at the end of a given period, there should be sufficient invoices to support the total cost of business fuel against which VAT will be recovered by the employer. Employers are free to develop their own policies to ensure that they have sufficient invoices available in case of an enquiry during a VAT audit.' Therefore, as long as some employees provide some invoices and those invoices show VAT of at least the employer's claim for VAT on fuel, it does not matter if some employees' expense claims are not accompanied by a VAT receipt.
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