Honest John reports that half of drivers fail on business mileage tax rules

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More than half of company car drivers are ignorant of tax rules on reclaiming business mileage, according to a YouGov survey.



Businesses whose employees use a company car are required to report it to HMRC, particularly if the vehicle is used for personal trips like driving to and from work.

Companies must 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.

It means drivers must record ‘to’ and ‘from’ locations, the reason for the journey and the number of miles travelled

But Fleet News reports that the survey, which was commissioned by ABAX, found 36 per cent of employees update their mileage log less than once a fortnight, leaving companies potentially exposed to inaccuracies, while 56 per cent were unaware of the rules relating to tax.

Honest John reports that half of drivers fail on business mileage tax rules