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?

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.

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.

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.

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!

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!

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.

I have had the opposite problem, I am on 12p per mile for a 1600 diesel and last month I used £420 ish in fuel to do company business, but the rate calculated it at only £389. My company will not budge on the 12p rate and told us to take it up with the HMRC. I can only assume that if I am allowed to lose money, you should be able to gain money.

Ironically, my manager has the 2000cc version of my car and gets 15p, but he consumes less per mile than me (and I don't hammer it, I usually cruise at about 60mph to keep my contributions to the company coffers to a minimum.)

HMRC's rate for a diesel up to 2ltr is 13.73p ex VAT as we pay HMRC rates so someone is at it.

So you advise of fraud, in writing!

It's not even close to fraud FFS.

The HMRC rate diesels at up to 1600cc (12p), 1601 to 2000cc (15p) and over 2000cc (19p)

There used to be a 1401 to 1600cc, but this was abolished last year.

looking at my expenses for the last 12 months in June 2011 a 1600cc diesel got 15p per mile, but today gets only 12p while the cost of diesel has gone up (my average for June 2012 was £1.36 and this month is £1.43). The HMRC are using us to keep company costs down.

Where are these figures from?
You can not be expected to subsidise your companies travel expenses.

[url=http://www.hmrc.gov.uk/cars/advisory_fuel_current.htmLatest figures[/url

Producing false supporting documents?

Sounds like the problem is that you're getting around 50 to the gallon whereas the rates are based on 60 for that size engine.

Published HMRC rates which my employer puts into the online expenses form.

The 'swings and roundabouts' rule applies apparently.

Makers say 64mpg

Lightly loaded, M62 hull to Leeds (flat most of the way) doing 60mph in cruise control gives me about 50 to 52 mpg.

The problem arises when you hit the inevitable jams (today from Ferrybridge to past the M1 junction) and when you come off to cut across, everyone else does the same so the A roads snarl up as well. What we need is a network of tunnels, similar to the testing they do on cars.

Nope, providing the documents requested.



No such rule, your company are at it.

They are advisory figures aren't they? Are the VAT inclusive or exclusive?

So all those MPs expenses were OK then?

They are advisory and inclusive of VAT, but from what our staff association is telling us, if we get the company to pay extra then it is taxed but there is no claim back for us to get anything back from HMRC. The company has chosen not to pay anything but the HMRC rate and the argument is ongoing.

Previous to us going on HMRC rates we claimed back a set rate at average prices for the month. When I had a C5 (not the Sinclair one !!) I was getting 10.5 miles per litre and claimed back at different rates each month depending on what I paid as an average. A much better system.