Content
More of the same?
Around the world
Hot tips
Inside out?
Sweet sacrifice
Simple trust
Done and dusted?
Open immediately
File under E
An Inspector calls
CO still OK
Open for business
High PHI
Arctic chills
Duty calls
Pensions
Fuelling around
WIP round
Win some, lose some
Take it and go?
Party talk
Work less, earn less
Making adjustments
|
It's unusual to see Customs arguing that they ought to be allowed give people VAT back on their expenses - it seems the wrong way round. But the UK government has been defending our rules on VAT and employees' mileage allowances in the European Court, where the European Commission argued that we should not be able to reclaim the VAT element of the fuel cost in a mileage rate. If you pay 40p a mile, the fuel might be 12p of that, which means that the VAT is 1.787p per mile - not much, but better than nothing. The Court agreed with the Commission that the UK rules were too generous. The employer isn't really buying fuel from the garage, but is rather paying the employee car hire - and the employee can't issue a VAT receipt, because the employee isn't VAT-registered. Customs said a few years ago that they were convinced the rules were all right, and even if they had to change them, they would not make a change retrospective. So, if you have been claiming VAT on mileage allowances in the past, you should watch out for a rule change in future - but you can keep the money you already have. If you are VAT-registered and haven't been claiming back on mileage allowances - after all, it is a funny rule - then you can go back three years and claim now.  |