56% of company car drivers unaware of HMRC business mileage rules

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More than half (56%) of company car drivers are unaware of HM Revenue and Customs (HMRC) rules on reclaiming business mileage, according to a YouGov survey.

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Businesses whose employees use a company car have a duty to report it to HMRC, particularly if the vehicle is used for personal trips like driving to and from work.Companies have to keep mileage records to show how their vehicles are being used. If the company doesn’t provide free fuel for private use to company car drivers its records must prove it.This requires drivers to record ‘to’ and ‘from’ locations, the reason for the journey and the number of miles travelled.The survey, which was commissioned by ABAX, found that 36% of employees update their mileage log less than once a fortnight, leaving companies potentially exposed to inaccuracies.Frank Ystenes, ABAX UK managing director, said: “It is crucial business owners and employees understand the laws and ensure accurate records are kept otherwise the penalties can be high."Read the full story in Traction Finance