In provisional figures released by the HMRC this month, it revealed that 960,000 employees paid benefit-in-kind tax on a company car in 2015/16 – a five-year high.
With more employees using company vehicles, coupled with the government continuing to target reducing tax evasion and serious fraud, it will mean an increase in the number of checks to businesses.
ABAX has been working with companies in the UK since 2012 to ensure they have the knowledge and technology in place to stay on side of the tax man and are fully compliant with the oft-changing criteria provided by the HMRC for logging business mileage.
Recent surveys carried out by ABAX show revealed that 56% of employees who drive a car for business purposes are unaware of the tax regime for reclaiming business mileage.
Looking more closely at industries, ABAX’s research found two thirds of those working in the accountancy industry are unaware of digital options to help compile mileage reports.
ABAX UK Chief Executive, Chris Miller, said: “The HMRC is clamping down even more on fraud and tax evasion and the outcome of this is that more businesses will receive checks.
“We have seen that failure to comply with HMRC standards has seen businesses and individuals collect five-figure penalties from the tax authorities. This has a significant impact on a company and can be easily resolved with digital technology.
“Our experience shows that there are fleet operations out there who are managing their mileage records manually and this is time consuming with the potential for inaccuracies to made which show in an audit.
“Now is the time to make sure you review your vehicle mileage bookkeeping processes and ensure you are fully compliant. An easy, cost-effective solution is to use digital vehicle technology, such as ABAX Triplog, with your vehicle fleet."
Specialist bathroom retailer Crosswater currently uses ABAX’s Triplog technology.
Tim Powell, Group Financial Director for Crosswater, said: “If you're looking for a mileage recording system that's easy to use, simple to install, respects employee privacy and also provides a complete tax compliant solution, then look no further than the ABAX Triplog. This has been a great investment for Crosswater."
UK-based network infrastructure services company, Opals Group, uses ABAX’s Triplog technology.
Sam Hodge, Opals Group Managing Director, said: “The ABAX technology has increased the efficiency of both our van and car fleets and led to a better company driving practice with employees gaining a better understanding of personal mileage and out of hours operation, helping to prevent any unauthorised usage.”
For more information visit www.abax.co.uk
Image attached: The ABAX UK team
Notes to editor:
For more information please contact Mark Pearson, Athene Communications – firstname.lastname@example.org or 01733 207333.
The company’s UK head office is at the Allia Future Business Centre, ABAX Stadium, Peterborough.
ABAX Group is owned by Investcorp, and is a Norwegian company within sales and development of telematics solutions for commercial and private vehicles. ABAX is currently the fastest growing telematics company in Europe. Additionally, ABAX provides products for Fleet Management and GPS tracking of equipment. ABAX has more than 450 employees and offices in Norway, Sweden, Denmark, Poland, Finland, United Kingdom, the Netherlands and China.