Member Article

A Taxing Situation for All Businesses with Company Vehicles

An HMRC clampdown on unauthorised company vehicle use has left many businesses exposed to potentially large fines for unauthorised use of company vehicles.

The Government has tasked HMRC with raising an additional £7bn a year in tax revenue, and company vehicle users are being targeted for a large proportion of this. With fines of up to £3000 per driver per year which can be backdated for up to 6 years, the consequences of not being able to prove company vehicle usage could prove very expensive.

Vehicle Tracking provides innovative, easy to use systems that provide all the information that you need to satisfy HMRC and information for previous years is available at the press of a button. With an HMRC pilot study in 2011 finding 40 per cent of small businesses not keeping adequate business records, one of the weakest areas was correctly recording business mileage. Over payment of business mileage, even unwittingly, is equivalent to providing employees with a private fuel allowance and carries weighty liabilities for tax and national insurance payments. HMRC demands total accuracy on mileage payments and expects to see evidential recording of all journey details, including reasons and postcodes for mileage calculations.

Tracking systems with NavStar are one of the most accurate ways to record every mile of every journey, allowing out of hours use to be immediately identified. It captures date, time and mileage details of every journey meaning there’s no need to trawl through receipts and calendars in an attempt to determine business v private mileage.

Tracking not only ensures all mileage is recorded, it also provides the business with an online management dashboard where reports can be collated and downloaded within seconds. A quick and easy way to save money, increase driver safety and ensure you and your drivers are tax compliant.

NavStar & Wardair provide a full range of tracking, mobile and fixed line telecoms. More information is available at www.navstar.co.uk and www.wardair.co.uk

This was posted in Bdaily's Members' News section by Wardair Limited .