New software targets Local Authorities ‘spend to save’ initiative

UK Local Authorities could save thousands with new software

Throughout the development phase of their recently launched software Exevia, Integral Ecology Limited worked with SME’s, PLC’s and UK Local Authorities to uncover their pain points in the mileage expenses claims process. The results make for interesting reading…

Integral Ecology calculated that one Scottish Local Authority could reclaim an additional £25,750 of VAT if they used Exevia to record their ‘grey fleet’ mileage. That’s the good news. The GREAT NEWS is they could backdate that claim for the previous four years. That’s over £100,000.

In order to reclaim the VAT on the fuel element of mileage expenses claims an employer may use the flat rate OR if they know the fuel type and engine size of the vehicle related to the claim they can claim the maximum rate as per HMRC tables. The Exevia management dashboard provides this VAT amount.

Is the company reclaiming any VAT on business mileage? If NO then they are missing at least the VAT on the flat rate per mile.

YES they are reclaiming VAT on business mileage but only at the flat rate since vehicle engine size and fuel type are unknown.

With Exevia the company will know vehicle engine size and fuel type and thus will be able to claim the maximum amount of VAT under HMRC rules.

Our research with 200 Local Authority grey fleet vehicles showed that the additional VAT reclaim over flat rate using  Exevia was £670 per month or £8000 per annum.

With the evidence provided as a result of a FREE MILEAGE EXPENSES AUDIT, the Local Authority could negotiate a repayment from HMRC going back four years.

Integral Ecology Limited are a UK based software development company specialising in the automotive and environmental sectors.

June 1st – HMRC Advisory Fuel Rates Updated

HMRC Advisory Fuel Rates Updated

HMRC Advisory Fuel Rates Updated

If you are an Exevia user and subscribed to HMRC rates then the Advisory Fuel Rates are updated automatically. Here’s some more information on the rates to help you ensure compliance with mileage expenses payments;

When you can use the mileage rates?

The rates only apply when you either;

– reimburse employees for business travel in their company cars

– require employees to repay the cost of fuel used for private travel

You must not use these rates in any other circumstances. If you use them correctly you will not need to apply for a dispensation to cover the payments you make.

Reimburse employees for business travel in their company cars

If you pay a rate per mile for business travel no higher than the AFR, for the particular engine size and fuel type, HM Revenue and Customs (HMRC) will accept there is no taxable profit and no Class 1A National Insurance to pay.

You can use your own rates which better reflect your circumstances if, for example, your cars are more fuel efficient, or if the cost of business travel is higher than the guideline rates.

If you pay rates that are higher than the advisory rates and can’t demonstrate the fuel cost per mile is higher, there is no fuel benefit charge if the mileage payments are solely for miles of business travel. Instead, you will have to treat any excess as taxable profit and as earnings for Class 1 National Insurance purposes.

Require employees to repay the cost of fuel used for private travel

If you have correctly recorded all miles of private travel and used the correct rate (or anything higher) to work out the cost of fuel used for private travel that the employee must repay to you, HMRC will accept there is no fuel benefit charge.

The advisory rates will not be binding where you can demonstrate that employees cover the full cost of private fuel by repaying at a lower rate per mile.

what

A New Tool for Fleet Compliance

UK based Integral Ecology Limited launches  Exevia

After nearly two years of development and testing Integral Ecology Limited have launched Exevia.

Exevia is a SmartPhone App and Online Management Software that records driver journeys accurately using GPS on a SmartPhone. Journeys are uploaded from the SmartPhone to the Exevia cloud where they can be viewed and submitted for mileage expenses.

Exevia;

  • Uses DVLA data look up to ensure figures are accurate for each vehicle
  • Enables maximum VAT reclaim on the fuel portion of mileage expenses payments
  • Reduces mileage expenses recording and reporting time for employees
  • Reduces administration at all levels – driver / manager / payroll
  • Accommodates disallowed ‘Home to Base’ travel claims

Using a SuperUser Login, Managers can view journeys, approve claims and submit them directly to payroll.

Exevia includes Management reports which include total mileage, total expenses, CO2 emissions, company VAT reclaim and employee Mileage Allowance Relief figures.

Integral Ecology Limited are a UK based software development company specialising in the automotive and environmental sectors.