Vehicle technology company Abax has launched its new campaign to highlight the importance of compliance with HMRC mileage rules.
The campaign emphasises the existing knowledge gap with companies who operate a van or car fleet and that they could be at risk of tax penalties of up to £3,000 if they aren’t operating in line with HM Revenue and Customs’ rules and requirements.
Abax UK chief executive Chris Miller said: "Using company vans for private use, like taking your mates to a football match, could mean the employer and employee are at risk of tax penalties for mileage claims and distance and mileage calculations."
Failure to provide information of sufficient detail or quality to support the declaration on the P11D can result in a £3,000 fine for poor record keeping, a requirement to repay all taxes and national insurance owed on the van, with the further possibility of a fine of up to 100% of the amount owed. Further still, HMRC can backdate the fines, penalties and tax owed, with interest payable, for six years.
Abax recently commissioned a survey through YouGov into the understanding around HMRC tax requirements and it revealed that 56% of employees who drive a vehicle for business purposes were unaware of the tax regime for reclaiming business mileage. It also revealed that 70% of business owners don’t fully understand the tax implications that surround mileage claims.