How to make a VAT reclaim on business mileage
In order to make a claim for VAT, it's always important to keep a record of VAT receipts. This is something that should constantly be relayed to your employees where possible and clearly stated in your
business travel policy
.
It's good if you can keep an accurate and updated log of the business travel you have as a company. Things to include with the receipt are the date, the start and end destinations of the trip, the mileage traveled, and the reason for the journey itself.
When it comes to fuel receipts, HMRC recommends holding onto them for four years. The reason for this is that HMRC might at some point ask to see evidence regarding your VAT returns. This can be the case for all tax returns, and so it's something to remember.
You should also track passengers, but remember you can only claim for passengers who are employed by the
same company. You will also have to keep the fuel receipt for all fuel purchases made for any business trips you wish to claim. The VAT amount on the receipt will need to correlate to the amount you want to claim.
Good to know: HMRC does accept scanned receipts and photos of the receipts as long as the image is clear and you can read all the words properly.