The End of the Financial Year…. But What does it mean for drivers?
Today the 31st March 2015 is D Day when it comes to the financial tax year. But what does that mean for drivers?
Well let’s start with the good news! If you are an employee and/or you drive your own vehicle for business purpose receiving the HMRC AMAP’s Rate (Approved Mileage Allowance Payments) then you mileage is reset from tomorrow. The way that this works is that the driver gets 45p per mile for the first 10,000 miles driven and then it drops to 25p per mile there after resetting back to 0 in the 1st of April. This rate is higher than the Advisory Fuel Rates as the extra allowances are designed to include fuel, insurance, servicing and maintenance. You are allowed to pay employees up to the approved amount of AMAPs each year without having to report them to HM Revenue & Customs or pay any tax on them.
Now the bad news! With the end of financial year it means all business mileage claims must be completed for 2014/2015 tax year to your Accountant, Book-Keeper or payroll to file your tax returns. Drivers, owner-driver and businesses alike before you send your mileage claim this year, think to yourself are my mileage records accurate and compliant. It’s not good enough anymore just to submit home to home claim, the HMRC are looking for mileage records to have an auditable trail thus meaning a lot more details for every journey.
The Key Things to look For to Ensure a Claim is Compliant
- Do you or your drivers include the date of travel?
- Do you or your drivers include where the journey starts?
- When completing a claim do you or your drivers include the place and/or company visited?
- Do you and your drivers include the start and closing mileage?
- Do you/your drivers show the total business miles?
- Are claims regularly checked for accuracy?
I know that the HMRC requirements are not completely clear and many companies (and individual) put themselves at unnecessary risk by misinterpreting the requirements or through complacency. To help you we at Fleet Innovations have put together a comprehensive guide which will help you understand the risks at the same time as showing you the steps to make sure you get it right and that your mileage claims are compliant. If you wish to download it for free click on the link provided http://try.peakmiles.com/download-hmrc-guidelines-here/
So why not keep calm by starting the new tax year with a fresh approach to your mileage expenses and allow us to get your claims accurate and compliant once and for all!
For more information or to avail of a free trial of the system please email Katie@fleetinnovations.com or call me on 0845 600 6880.