Unless you want a hefty fine from HM Revenue and Customs (HMRC), it’s essential to become an expert in recording business mileage. At the very least your records must include information regarding the date of travel; number of miles travelled; reasons for travel and start/finish points. As well as business mileage you must also identify the vehicle and the type of fuel being consumed. Why? Because all of these things combined affect the amount employees can reclaim.
So, as you can see, being organised is pretty important. In fact, it could save you a fine of up to £3,000 per annum, per employee for an incorrect tax return due to an inaccurate mileage log for taxes – now that’s no joke. With this in mind, here are some top tips for tracking mileage.
While this might sound a little archaic – especially with advancements in modern technology – keeping a handwritten log of how far you and your employees travel for business purposes is extremely practical. This method is ideal for start-ups with a limited budget and small fleet or for anyone simply looking for an affordable way to avoid repercussions.
That said; it’s also worth imputing all information into a spread-sheet as a backup.
Fuel cards are an excellent vehicle mileage tracker enabling all drivers to easily monitor their miles and fuel use. Drivers can fill up at a petrol station without paying the bill from their own pocket and keep track of their mileage at each and every stop. Some fuel cards even offer itemised VAT invoicing making reclaiming business fuel VAT an absolute breeze.
Let’s face it; the majority of people are rather addicted to their gadgets. Therefore using a smartphone app to track business mileage seems to make complete sense. Apps of this kind are incredibly accurate and help to eliminate many errors that can occur through manual logging.
Alternatively, you may wish to use a telematics system in which a driver presses a button at the start of a journey and the miles are then recorded automatically. Telematics journey data can be logged on a web-based application. All drivers need to do is enter the nature of the journey be it business-related or for personal reasons.
A dongle/mileage logger is another option. Simply plug the dongle into a USB port and your journey will be tracked by GPS. All of this useful data can then be uploaded and stored to a computer system helping to keep an accurate log of how far each driver has travelled. If you forget to plug in the dongle at the start of a journey- don’t worry. Simply record the information manually and add it to your computer logs when you have time.
If you’re looking for a new vehicle, the Vanwise Group offers a wide range of used vans at our three dealership locations: Harlow and Maidstone. With finance option including business contract hire available, you’re sure to find the right solution for you.