A number of trade associations have issued warnings to their members recently. They are concerned that HMRC are making an issue of business mileage recording. Apparently, employers are failing to keep adequate records of mileage for employees who have the use of company vehicles.

Self-employed business owners can also be caught out by the same issue. If you are a sole trader or partner in a business and have the use of a business vehicle for a mix of private and business mileage you should keep a record of your total mileage for the tax year and your total business mileage. Any claim for vehicle running costs, or a claim for capital allowances, should then be adjusted to remove any private use element, using the mileage data collected.

HMRC are still running a business record check campaign. Business owners should take steps to regularise their record keeping ensuring that they are compliant with legislation. If you have any doubts about the systems you presently use to record mileage, or any other aspect of your business record keeping, please call and we will undertake a review on your behalf. A few adjustments to your present routines may be preferable to an uncomfortable audit by HMRC and possible additional tax bills, penalties and interest payments.
 

Categories: All News

14 Comments

Leave a Reply

%d bloggers like this: