VAT was the year that was!?

THIS ARTICLE SUMMARISES some of the main VAT changes during 2006 focusing on issues of interest to general practitioners rather than changes relevant to specific trades.

Retaining petrol receipts

This change is one that I have found difficult to implement. Having been VAT registered for eight years and able to reclaim input tax on the petrol element of my 40 pence mileage claim without a tax invoice a change in the rules meant that I had to obtain petrol receipts each time I refilled my car with fuel and attach this receipt to my monthly mileage claim. It took me about six months to remember always to ask for a tax invoice at the petrol station and I am probably not alone in this.
The new rules which took effect from 1 January 2006 concern the recovery of VAT on mileage...