A recent case involving a pharmacy group has resulted in a £67,000 VAT assessment as a result of lack of supporting evidence.
HMRC found that employee mileage claims were not supported by the fuel receipts, and disallowed the input VAT reclaimed. The business argued that their own internal records (the mileage claim) sufficed. The Tribunal agreed with HMRC and dismissed the appeal.
This is a topic that has the potential to affect a number of businesses. The decision re-emphasises the importance of attaching at least one fuel receipt to cover the monthly mileage claim.
If you have any concerns about your VAT recovery position please contact our VAT Manager, Nigel Smith.