Guess your mileage and risk being fined by the tax man, companies are warned

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Companies are being warned to make sure staff log their mileage correctly in the light of a Cambridgeshire business that was fined after it was discovered staff there were guessing journey distances.
HMRC Regulations

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