HMRC fuel rates and company expenses : Sat Sep 22, 2012 10:30 pm  

I currently have a company car and get my fuel reimbursed through expenses at the HMRC rate (15p a mile)

Our company uses Global Expense system which calculates the distances I cover based on post codes.

When I submitted my mileage this month the system told me I needed to supply more fuel receipts as I was claiming back more than I should but I had no more fuel receipts to submit.

The crux of this is clearly that my car is using less than 15p of fuel per mile, but how do I stand from a expenses vs benefits standing as over the year as I will undoubtably claim back more than I have spent?

Here's a worked example:

Last week I travelled approx 650 miles and spent £85 on fuel. The system calculates I should get back £97.50 and therefore tells me I need another receipt which I don't have.

Is the £12.50 I've gained technically a benefit even though it's based on HMRC's figures and the system will not allow me to claim anything but that rate?

I've asked various finance and fleet people but can't get a sensible answer beyond "we use HMRC figures"

Any ideas?

Re: HMRC fuel rates and company expenses : Sun Sep 23, 2012 6:30 am  

You can still claim it, because you are expensing at a rate per mile, rather than actual expense.

Won't you rack up some personal mileage that will produce further receipts that you can use towards the claim? Otherwise, you should still get paid - after all even if you lose a receipt for a valid business expense, you would still claim that.

Re: HMRC fuel rates and company expenses : Sun Sep 23, 2012 6:54 am  

The software is to blame, the rate is agreed by HMRC as valid and fair for tax purposes, its up to you whether or not you drive like an idiot and spend £1 a mile on petrol or manage to squeeze out 5p per mile from driving economically - the rate stays the same.

I use my own car for business mileage and claim 45p per mile at HMRC rates, don't have to provide any receipts for that, just a mileage form which can be easily checked by any individual or software, the distance between Leeds and Birmingham rarely varies at all - I've no intention of proving how far it is to anyone.

Re: HMRC fuel rates and company expenses : Sun Sep 23, 2012 12:40 pm  

My company requires fuel VAT receipts for company mileage expenses.
I don't know why as it proves absolutely nothing other than someone bought some fuel at or around the time that I drove somewhere.

Re: HMRC fuel rates and company expenses : Sun Sep 23, 2012 12:55 pm  

El Barbudo wrote:

My company requires fuel VAT receipts for company mileage expenses.
I don't know why as it proves absolutely nothing other than someone bought some fuel at or around the time that I drove somewhere.

Mine does aswell, I'd always assumed it was to at least provide some satisfaction that you'd not been filling the car with red diesel, or claiming a lot more miles than you have fuel for. That said they're not often checked, just need to be retained for something like 6 years.

Re: HMRC fuel rates and company expenses : Sun Sep 23, 2012 1:56 pm  

El Barbudo wrote:

My company requires fuel VAT receipts for company mileage expenses.
I don't know why as it proves absolutely nothing other than someone bought some fuel at or around the time that I drove somewhere.

Won't it be them claiming the VAT back?
A fuel card makes the whole lot easier though.

Re: HMRC fuel rates and company expenses : Sun Sep 23, 2012 3:11 pm  

Big Graeme wrote:

Won't it be them claiming the VAT back?
A fuel card makes the whole lot easier though.

The receipts are to claim back the VAT. Trouble is, they think there's more to claim back than my receipts have on them!

I've always used fuel cards before, hence the query - much simpler!

I also now have a company credit card that's paid from my personal bank account but that's a different issue!

Re: HMRC fuel rates and company expenses : Sun Sep 23, 2012 3:34 pm  

AJW wrote:

The receipts are to claim back the VAT. Trouble is, they think there's more to claim back than my receipts have on them!

I've always used fuel cards before, hence the query - much simpler!

I also now have a company credit card that's paid from my personal bank account but that's a different issue!

Just get a fuel receipt from someone else. I used to have a similar problem and just got friends and relatives to give me their receipts. As you say the receipts are only there as a technicality to cover the VAT, just do that, there is nothing on a receipt to tie it to a vehicle.

Re: HMRC fuel rates and company expenses : Sun Sep 23, 2012 4:07 pm  

Saddened! wrote:

Just get a fuel receipt from someone else. I used to have a similar problem and just got friends and relatives to give me their receipts. As you say the receipts are only there as a technicality to cover the VAT, just do that, there is nothing on a receipt to tie it to a vehicle.

The system flags which journey the receipt should apply to! So, I'd have to find one for the right amount ( or more) from the right date range!

I'll just put a comment in every month and hope my boss applies the common sense the system lacks!

Re: HMRC fuel rates and company expenses : Sun Sep 23, 2012 6:04 pm  

AJW wrote:

The system flags which journey the receipt should apply to! So, I'd have to find one for the right amount ( or more) from the right date range!

I'll just put a comment in every month and hope my boss applies the common sense the system lacks!

That is an insane system, all ours do is total up the number of miles I've claimed, multiply by 14.47p to work out what it cost, the then take away the amount spent on fuel (card or cash) and any difference I either repay or get if there is a surplus. My car can get somewhere between 12 and 13p per mile on a run so I can be in surplus most months.