Going ‘the extra mile’ is generally considered to be a good thing, right? Certainly in the world of business metaphors it is. But how about someone saying that they’ve gone the extra mile and then reaping the associated benefits without actually having followed through? Whether talking metaphorically or about actual miles on the clock, this is surely never a good idea. And yet when it comes to filling out mileage expense claims this happens more often than many employers realise.
The issue of inflated mileage claims has been plaguing businesses for a long while, but as companies struggle to reduce costs and HMRC cracks down further it is an area that deserves revisiting. Businesses can make significant savings by approaching the matter in a more structured way – savings of around 12% according to our latest findings. How can this be done? The answer lies in accurate and robust mileage capture systems that leave little room for inflated mileage claims to be submitted. These systems allow employers to track actual mileage driven and then ensure that they only pay their employees what is genuinely owed.
However, the systems are about more than businesses just protecting themselves from paying too much on employee expenses. HMRC is routinely asking companies to substantiate the AMAP claims from grey fleet drivers to ensure that this tax free income is not overstated. Poor record keeping or inflated claims have led to hefty fines being levied on companies.
Controlling and reducing all fleet related costs is an on-going mission for businesses and accurate mileage capture is one part of this. It can lead to substantial savings – which are especially welcome when considering the ever-increasing fuel cost burden on fleets. We have a number of clients who are using mileage capture systems and who are enjoying cost-savings as a result.