N E W S
NINE OUT OF TEN COMPANIES WOULD FAIL AN HMRC AUDIT
14 March 2012
The mileage audit company says that more than half of drivers regularly claim on fuel and mileage expenses, which makes them liable to pay benefit-in-kind (BIK) tax because their employer effectively pays for some of their private mileage.
With HMRC focusing on mileage records during tax inspections, a number of firms have consequently been hit by six or even seven-figure claims for fines and back tax. These cases follow detailed HMRC investigations into fuel expense payments and mileage logs.
According to reports, 93% of companies relied on unaudited mileage reports and around 60% of drivers claim for more business fuel than they actually use. With HMRC going to extraordinary lengths to find evidence of this in mileage records, it’s time for fleet managers to tie up all their lose ends and ensure that their records are kept up to date – or they risk putting their fleet in jeopardy.