VAT registered SMEs throughout the UK are missing out on a quarter of VAT reclaims due to their messy business practices, according to fuelGenie research which is the first fuel card that can be used at many supermarket forecourts.
Warwick Business School professor Stephen Ropper of the Centre for Small and Medium Sized Enterprises stated that SMEs are missing their reclaims of about £1.2b in VAT, because their records are not properly kept.
fuelGenie’s Sarah Keane stated that petrol is the largest expense that SME employees can claim but around one out of every four SMEs reports their fuel use without a receipt to show for it. She continued to state that SME owners need to fix their attitudes because they are risking the loss of major cash returns at a time when businesses do not have any profit to spare.
The calculations from fuelGenie show that the average VAT business that has at least five cars could get back about £1000 of petrol each year but are missing out on about £250 of savings due to their lousy record keeping.
By region, Scotland SME employees had the highest incidence rate of lost receipts with around 40% of employers never submitting a receipt. The South West and South East followed closely behind with 32% and 31.8 respectively.
The top SMEs were found in Northern Ireland where an impressive 100% of all VAT SME’s submitted a receipt.