Half of fleets unaware of inaccurate mileage dangers
A new study has highlighted a lack of knowledge amongst fleet managers over inaccurate mileage claims.
Nearly half (47%) of businesses with fleets said they were unaware of the possibility of further tax bills, often reaching into four figures, if staff mileage claims proved inaccurate.
Her Majesty’s Revenue and Customs (HMRC) says that businesses should measures and systems in place to ensure any business mileage claims made by their employees can be paid free of tax.
A spokesman added: “Should such claims turn out to be false, both the employer and employee may be liable to action taken by HMRC.”
The report, carried out by TomTom Business Solutions, revealed that while half of businesses don’t bother double checking their drivers’ mileage claims, 72% suspect that their drivers regularly over-estimate mileage claims.
Foolproof evidence
Giles Margerison, Director of TomTom Business Solutions for UK & Ireland, says there is plenty of technology out there to help businesses validate mileage claims and secure piece of mind.
“In today’s tough economic climate, taking a harder line on business mileage claims could net the HMRC significant additional tax revenue,” he explains.
“For businesses who want to mitigate their risk, vehicle tracking provides foolproof evidence of exactly how many miles were travelled, by whom and when to validate mileage claims.
“Detailed mileage expense reports can be generated at the touch of a button and exported directly into company accounts, minimising time-consuming admin.
“Moreover, employees also benefit from the technology by reducing their administrative burden. They no longer have to complete mileage expense reports and also benefit from tools to improve their working day and to make for safer working conditions.”
Click the video below to hear it from Giles himself.
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