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.