How often do you see a mileage expense claim submitted by an employee and all of their journeys end in either a zero or a five?
Well according to some industry research nearly a quarter of employees who submit mileage expense claims 'round up' their journeys.
It may not seem a big deal, but it is not deemed to be compliant by HMRC.
If HMRC conducts an audit of your businesses mileage expense claims and they find trends within your employees claims then you may find yourself subject to a fine.
We recommend you enforce a robust policy throughout your business that your employees follow; this should include the following as a bare minimum:
- Employee name
- Car registration number, make and model
- Engine size
- Month of mileage expenses
- Travel date
- Start and end address including postcode
- Reason / description for the journey
- The total mileage for the specific journey (do not round up)
- Ensure you are using the correct Advisory Fuel Rates (AFR) from HMRC, these can be found by clicking here.
If you'd like more information or advice about how JourneyTrack could help your business with Mileage expense claims, please get in touch with one of our team.