TomTom Business Solutions research: Employers unaware inaccurate mileage claims could increase tax

Almost half (47%) of employers that operate fleets are unaware that they could face tax bills for thousands of pounds if staff mileage claims are inaccurate, according to a study by TomTom Business Solutions.

The research reveals that while 50% of respondents do not routinely double-check the accuracy of their drivers’ mileage claims, 72% suspect that their drivers regularly over-estimate mileage claims.

More than one in ten (11%) are convinced that exaggerated claims are routine.

Giles Margerison, director, UK and Ireland for TomTom Business Solutions, said: “In today’s tough economic climate, taking a harder line on business mileage claims could net the HM†Revenue and Customs (HMRC) significant additional tax revenue.

“For organisations that want to mitigate their risk, vehicle tracking can provide evidence of exactly how many miles were travelled, by whom and when to validate mileage claims.

“Detailed mileage expense reports can be generated at the touch of a button and exported directly into organisation accounts, minimising time-consuming administration.

“Moreover, employees also benefit from the technology by reducing their administrative burden. They no longer have to complete mileage expense reports and also benefit from tools to improve their working day and to make for safer working conditions.”

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