Claim mileage and buy a new car. That’s exactly what Mike LaPac a Worcestershire business man did once he started to use the PEAK Mileage Expenses System. Before using PEAK, Mike rarely claimed any mileage and if he did he always under claimed. Since using PEAK Mike is now claiming mileage every month and this has covered the lease costs of a brand new Hyundai IX35. If this story is familiar then contact us today via firstname.lastname@example.org
As a business owner you will no doubt be aware that you can claim a tax free mileage rate for any business mileage you undertake. The AMAP rates as they are known, allow you to claim 45 pence per mile for the first 10,000 miles and 25 pence thereafter. The problem is that many small business owners simply don’t claim this mileage, resulting in valuable missed opportunity.
The PEAK system uses a small USB GPS device that you place in your car and it will record all your business trips. It means that you can create an accurate claim in approximately 6 minutes a month.
Our quick guide will help you to understand why claiming your mileage is so important.
What Can You Claim
- Up to 45 pence per mile for the first 10,000 miles
- 25 pence for every mile after 10,000
How much is My Mileage Worth
- 20,000 miles = £7000
[highlight1]£12,000 – Approximate amount higher rate tax payer would need to earn to have this in their pocket.[/highlight1]
- 10,000 miles = £4500
[highlight1]£7700 – Approximate amount higher rate tax payer would need to earn to have this in their pocket.[/highlight1]
- 5,000 Miles = £2250
[highlight1]£4000 – Approximate amount higher rate tax payer would need to earn to have this in their pocket.[/highlight1]
What You Could Afford
Lease – Mercedes Benz E Class AMG
Lease – Mercedes Benz C Class AMG
Lease – BMW 118d M Sport 5dr
Breitling Navitimer Watch
Breitling Super Ocean Watch
Breitling Colt Watch
Rugby World Cup – Twickenham Knock out Series Tickets for 5 games leading up to the final in the Twickenham Pavilion
|Rugby World Cup – Millennium Stadium – Full Series – 8 games prestige package||Rugby World Cup – Olympic Stadium – Venue Series – Full Series – 5 games prestige package|
Beware of HMRC
HMRC Investigation, Payments and Penalties
HMRC wants to ensure that the correct amount of mileage has been paid and the right amount of tax has been paid. Any over estimation of mileage could be seen as fraud and penalties levied for the inaccuracy.
Most Frequent Areas of Concern/Investigation
- Overestimation of Mileage – have trips been exaggerated
- Wrong Mileage Rate – higher/lower rates used to exaggerate claim
- Sparse info – If your claim does not contain all the items on the checklist then you might have issues as HMRC cannot properly investigate
- HMRC will require you to prove your innocence.
What could it cost you?
- Tax owed on any over claimed mileage
- Penalty up to 100% of tax owed
- Tax and penalties between £10,000 and as much as £30,000
- HMRC can go back over records up to 6 years
- You may end up under the spotlight for other tax related issues
Benefits of the PEAK System
- Quick – takes 6.2 minutes a month
- Uses GPS so records all trips
- Hide Personal trips so no big brother
- 100% Compliant with HMRC requirements
- Works for anyone claiming mileage
- Starts at just £4.99 per month