mileage capture auto expenses

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Drive about, print it out In-acurate claims costing your business? No time to claim your mileage? www.autoexpenses.co.uk £ Mileage Capture System Un-audited If HMRC finds errors in the records, such as drivers claiming tax-free mileage payments for more miles than they actually drove, they can go after a company for the tax due on the difference – plus interest and penalties. One company could not produce mileage records relating to all its past payments to drivers. HMRC took the view that this meant that the firm had effectively paid for some private fuel and therefore the drivers owed private fuel benefit tax going back six years. The company eventually paid the drivers’ tax liabilities as part of a total settlement of over £350,000. Duty of care... Each and every company has a legal obligation and duty of care to their company car drivers, and this extends to anyone driving on company business. Our data can form a valuable part of your duty of care records ensuring the company is monitoring its drivers. Easy Target Mileage claims are seen as an easy target by the Revenue’s investigators because virtually all companies pay drivers miles and the tax rules require businesses to keep records to substantiate what they pay to drivers. Firms are facing six-figure back-tax bills and fines for payments on ‘phantom’ business miles in a wave of investigations into these fuel and mileage payments. HMRC has declared open season on insufficiently checked mileage claims, with evidence of tax inspectors going to extraordinary lengths to uncover false or missing reports. For example, a tax investigator spent days using an online route planner to scrutinise claims made by 20 drivers, as he went through one company’s mileage records. The checks, which went back several years, allegedly revealed inaccuracies that usually resulted in the drivers being paid too much. HMRC told the firm it would treat claims by the firm’s 135 other drivers as similarly inaccurate. It has warned the business that it faces a potential total charge of £400,000 in respect of tax-free payments it made for these alleged ‘phantom’ business miles. This is not an isolated case. www.autoexpenses.co.uk Mileage Capture System

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Powered by Phantom’s powerful “insight”technology our “ black box” ensures accuratemileage capture with a simple and secureinternet portal to produce your mileageand expenses claims.Using the latest GPS technology, journey startand end points are time stamped and thedistance driven accurately recorded. Driverssimply log-in later to highlight private or businessuse. Once confirmed a report is filed and saved ina historical database. Once filed the report cannotbe edited to ensure the integrity of the saved data.

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Page 1: MILEAGE CAPTURE AUTO EXPENSES

Drive about, print it out

In-acurate claims costing your business?No time to claim your mileage?

www.autoexpenses.co.uk

£

Mileage Capture System

Mileage Capture System

Un-audited If HMRC finds errors in the records, such as drivers claiming tax-free mileage payments for more miles than they actually drove, they can go after a company for the tax due on the difference – plus interest and penalties.

One company could not produce mileage records relating to all its past payments to drivers.

HMRC took the view that this meant that the firm had effectively paid for some private fuel and therefore the drivers owed private fuel benefit tax going back six years.

The company eventually paid the drivers’ tax liabilities as part of a total settlement of over £350,000.

Duty of care...

Each and every company has a legal obligation and duty of care to their company car drivers, and this extends to anyone driving on company business. Our data can form a valuable part of your duty of care records ensuring the company is monitoring its drivers.

Easy Target Mileage claims are seen as an easy target by the Revenue’s investigators because virtually all companies pay drivers miles and the tax rules require businesses to keep records to substantiate what they pay to drivers. Firms are facing six-figure back-tax bills and fines for payments on ‘phantom’ business miles in a wave of investigations into these fuel and mileage payments.

HMRC has declared open season on insufficiently checked mileage claims, with evidence of tax inspectors going to extraordinary lengths to uncover false or missing reports.

For example, a tax investigator spent days using an online route planner to scrutinise claims made by 20 drivers, as he went through one company’s mileage records.

The checks, which went back several years, allegedly revealed inaccuracies that usually resulted in the drivers being paid too much.

HMRC told the firm it would treat claims by the firm’s 135 other drivers as similarly inaccurate. It has warned the business that it faces a potential total charge of £400,000 in respect of tax-free payments it made for these alleged ‘phantom’ business miles. This is not an isolated case.

www.autoexpenses.co.ukMileage Capture System

Page 2: MILEAGE CAPTURE AUTO EXPENSES

Our Solution Powered by Phantom’s powerful “insight” technology our “ black box” ensures accurate mileage capture with a simple and secure internet portal to produce your mileage and expenses claims.

Using the latest GPS technology, journey start and end points are time stamped and the distance driven accurately recorded. Drivers simply log-in later to highlight private or business use. Once confirmed a report is filed and saved in a historical database. Once filed the report cannot be edited to ensure the integrity of the saved data.

• Links to online mapping to identify locations • Regular locations can be uploaded • Regular journeys can be saved as business or personal for future reports • Reports can be customised for business, personal or both • Additional comments can be added next to each journey • Take 5 minutes to prepare your monthly expences!

Grey Fleet Grey fleet drivers are employees that drive their own cars for business purposes.

Due to this mixed use, staying compliant with HMRC regulations can be a mine field.

By law the HMRC states that employees using their own vehicles for work are entitled to receive certain payments free of tax and, if employees receive greater amounts than are allowed, they will pay tax on the excess. Providing evidence of business vs. private mileage for each driver can be extremely difficult without the right systems, leading to large fines and prosecution from HMRC.

Many fleet operators are not aware of the hidden challenges grey fleets present.

Get your books in order! It’s not only the big firms that need to worry, HMRC also announced in a February Review Document that it plans to carry out Business Record Checks (BRCs) at 60,000 SMEs between now and 2015.A pilot study run by HMRC last

year found that 40% of firms’ records weren’t up to scratch.

Mileage Capture Systemwww.autoexpenses.co.uk

How Does It Work ?

The device comes in 2 formats, fully installed or our latest “plug and play” unit that utilises the vehicle’s OBD-II socket.

Once activated the data is automatically uploaded to our servers via GPRS.

You can then access your account from any internet enabled device via our secure portal.

Journeys can be quickly assigned as business or personal.

Reports or expenses claims can then be downloaded in PDF or spreadsheet format.Historical data is retained .

Comments can be added to each journey if required as a reminder or customer note.

Mileage rates can be easily changedFleet managers can control access to the data, allowing individual drivers to see only their journeys.