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Mileage Expenses and Tax – Quick Summary

Mileage Expenses and Tax – Quick Summary

Mileage Expenses and Tax

  • HMRC wants to ensure that all companies and individuals in the UK pay the correct and appropriate amount of Taxes.
  • Mileage is generally paid to an employee free of tax or national insurance.
  • If a driver has over-estimated business mileage, then payments have been made without tax that should have incurred tax.
  • HMRC wants to ensure that mileage has not been paid for miles that have not been driven.
  • To do this HMRC may want to audit mileage records to check that all is in order.
  • HMRC will expect to see detailed records of all mileage expenses to enable them to undertake a full audit.
  • If the mileage expenses, process, policy and data capture is not comprehensive enough then it can be deemed to be non-compliant.
  • There are significant penalties not only for the overestimation of business mileage but also for non-compliance of mileage records.
  • You must submit accurate and compliant mileage expenses or you risk significant financial penalties

Find out more www.peakmiles.com

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About the Author

Alex Baker
"The reasonable man adapts himself to the conditions that surround him... The unreasonable man adapts surrounding conditions to himself... All progress depends on the unreasonable man."

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