A PROPOSED ruling banning UK firms from claiming back VAT on company mileage expenses could lead to tighter control of other company expenses, it is warned.
The Forum of Private Business believes the European Court of Justice (ECJ) ruling could be extended in the future to areas such as hotel use, phone bills and taxis. In March, the ECJ declared the law allowing firms to claim back VAT on staff mileage expenses is illegal.
Forum of Private Business (FPB) chief executive Nick Goulding said he was concerned that the ruling would set a precedent for other similar legislation.
He added: ‘Small firms and the European economy need less red tape, not more.’
In March, Fleet News launched a new campaign after the ruling was announced. The Fleet News FuelWise campaign, in association with Arval, raises awareness and highlights best practice in dealing with the challenge of the ruling and gives advice on key issues.
To read all the articles in our FleetWise campaign click on the button on the lefthand side of the FNN homepage.