1 September 2014

HMRC has confirmed that VAT receipts must be kept to cover the fuel element of a mileage allowance paid for the use of company or private cars for business purposes, if any VAT is to be claimed on that fuel element. This follows a suggestion by the Office of Tax Simplification that the requirement might be dispensed with, but that is not possible as it was introduced following a CJEU ruling in proceedings against The Netherlands (Case C-338/98).