FACT – Businesses are being fined by HMRC for having inaccurate mileage records.

  • HMRC are now carrying out telephone audits
  • They aim to check mileage records of 60,000 SME’s by 2015
  • They will call a business and ask for some mileage claims
  • If more than 20% end in a zero they will carry out an on site inspection
  • HMRC staff will discretely follow your drivers to validate their journeys
  • Fines can be up to £18000 per driver

 

Here are some examples;

  • A south of England-based pharmaceutical company initially fined £10 million for mileage record discrepancies associated with around 1,000 drivers. The company appealed and eventually agreed a settlement of about £1 million.
  • A company fined £500,000 after an HMRC inspection of mileage claims relating to 20 company cars was extrapolated across the organisation’s 300-strong fleet.
  • An SME with 15 drivers fined £25,000 after an HMRC audit revealed an employee – one of three whose mileage reimbursement claims were closely scrutinised – had significantly overstated their business mileage. The business paid tax liabilities and penalties in relation to one third of all mileage claims, going back four years.
  • A construction company in the West Midlands fined £128,000 for discrepancies in relation to 10 vehicles.
  • A transport company fined £42,000 for irregularities relating to 10 vehicles.
  • A business fined more than £28,000 in relation to mileage errors associated with two company cars.
  • A company fined £21,875 also relating to inadequate mileage reporting relating to two company cars.
  • So as well as avoiding fines and ensuring HMRC compliance, Exevia makes any HMRC expenses audit an easy process.

     

    For more information or to setup Exevia for your drivers please Contact Us.