Wolverhampton accountants AGS are advising local businesses to be aware of HM Revenue and Customs changes concerning tax on business mileage.
Under the original guidelines announced in December, in order to claim tax back, employers were instructed to provide a VAT invoice whenever fuel was purchased.
Prior to this no supporting VAT documentation was required. AGS says the new legislation has created confusion and many businesses felt the guidelines were impractical. But new clarification says there should simply be adequate invoices to support the mileage claim with less focus on a VAT form.