Almost two thirds (63%) of UK businesses employing between 500 and 999 employees will be reviewing their fuel reclaims process in 2012, a survey suggests.
The ALD Automotive YouGov survey of UK financial directors suggests that companies are now taking the threat of prosecution by HMRC more seriously and are recognising that inaccurate or fraudulent business mileage claims can have a major impact on cost control and fleet budgeting.
Keith Allen, managing director of ALD Automotive (UK), said: “With HMRC cracking down on companies who aren’t able to provide auditable records it’s in the interest of every business to ensure that employees driving on work-related journeys file accurate mileage reports and appropriate online systems are put in place to manage this area.
“Not only will it reduce the risk of the employer and employee being liable to action but experience suggests that significant savings can also be achieved in fuel cost."
adamrollins - 07/02/2012 15:49
Capturing accurate journey records is an imperative business function. When reviewing fuel reclaims processes, the decision to employ a system should certainly include HMRC compliance requirements; a system should be able to capture: date of journey; start and end locations; reason for the journey; management approval of the journey. Systems that can offer additional benefits will often pay for themselves. E.g. with accurate mileage reporting, there is usually a reduction in the number of business miles reported, resulting in significant fuel savings. Taken in conjunction with fuel cards, Midas FMS can offer major administrative reductions in reconciling fuel spend between business and private use, with no requirement to process drivers' individual VAT receipts. Overall, a mileage capture system will bring efficiencies to a company that go beyond the need to satisfy HMRC requirements. Most companies that already use Midas FMS do so for benefits other than compliance, but are secure in knowing they have a system that can capture data to HMRC standards as well. Adam Rollins. adam.rollins@midas-fms.com