Policy for claims (pdf, 156 kb) - University of West London

8. Tax issues8.1 This policy and procedure has been prepared to ensure compliance withrelevant UK tax legislation thereby avoiding situations where either anemployee or the University is exposed to an assessment for tax byHMRC.8.2 Where an employee is reimbursed business mileage in their own car ata rate of less than 40p per mile for the first 10,000 miles or 25p per milefor mileage over 10,000 miles, they may claim tax relief on thedifference between the amount reimbursed and the statutory rates(above). The relief, which can be claimed from HMRC, is claimed by theemployee as part of the Self Assessment tax return process. It is theresponsibility of the employee to keep mileage records and make theirown claims to HMRC.8.3 In order to pay subsistence allowances (such a flat rate daily allowancesor fixed overnight rates) an organisation is required under HMRC rulesto obtain specific agreement to the amounts within their P11Ddispensation otherwise any such payments will be treated by HMRC astaxable income of the individual and reportable on P11D’s. TheUniversity has no agreed dispensation in place for subsistenceallowances and that is why the actual costs rather than flat ratesubsistence payments must be claimed. Furthermore, claiming actualcosts allows the VAT to be reclaimed (providing a proper VAT receipt isobtained).8.4 A valid VAT invoice contains the following information:The name and address of the supplierThe VAT identification number of the supplierThe date of the transactionDescription of the transactionThe rate of VAT chargedThe amount of VAT chargedInvoices from UK suppliers for less that £250, (i.e. for fuel) arevalid if they show the name of the supplier, their VATregistration number, the date and the rate of VAT shown in theinclusive value of the transaction8.5 There will be occasions when costs which are properly incurred falloutside HMRC definitions and tax is payable on them by the employeewho incurs the cost. The University recognises that such costs may beincurred from time to time and will gross up such costs for tax andUniversity of West LondonPolicy for the reimbursement of travel and other expenses 2012-13 Page 12