DCML has launched a new app – Dealer Car Manager BIK – in response to the recent crackdown by HM Revenue and Customs (HMRC) on businesses unable to provide an adequate paper trail of records.
The firm believes the vast majority of car dealers would be unable to present, if asked, complete records of vehicle usage over the last 12 months. This represents a widespread compliance risk across the UK’s dealer network.
Designed to help dealerships avoid potentially heavy penalties, the new BIK (benefit in kind) app is capable of calculating the tax implications for every employee according to their use of company vehicles.
HMRC’s record checks on businesses increased in 2012, which has so far resulted in a number of substantial fines being handed out relating to vehicle use as a benefit in kind. Dealer Car Manager BIK gives dealers a full audit trail of vehicle usage and fuel recovered for private miles, as well as overall fuel costs.
Nick Flaherty, DCML’s technical director, said: “Non-compliance on vehicle usage is absolutely rife and that is a big problem now that HMRC has got to grips with the issues.
“The goal of the new app, which synchronises with the web platform, is to make it dramatically easier for companies to calculate their own tax liability and that of their employees, and to report on vehicle usage.”
Far simpler to use, the new app utilises GPS tracking and real-time synchronisation with the Dealer Car Manager web platform to save time while providing reports and annual tax statements for all vehicle users. Fuel card data can be imported into the system which reconciles miles driven against fuel purchased.
Examples of non-compliance can range from small issues which can be rectified very easily to complex matters whereby record-keeping is inconsistent and incomplete.