The tax man is getting tough on companies which fail to report mileage claims accurately and are spot checking which is when Soham-based engineering firm Ivor Searle was found to have estimated employee mileage that could not be tallied up to fuel card invoices.
The company was fined heavily as a result - HMRC imposed a £500 fine on the company, a £3,000 penalty for incorrectly compiled paperwork and declared that a fuel benefit charge should have applied in full for the 600 unaccounted for miles.
“This comes at a time when we’ve recently published some YouGov survey results which show that 70% of business owners don’t fully understand the tax implications that surround mileage claims in their fleet," said a spokesman for ABAX, which help companies comply with HMRC regulations.
“There are massive implications for businesses across Cambridgeshire which could face a similar fate if they fail to understand the tax regime correctly."
Read the full story in the Cambs Times