APHC is warning all businesses who provide company vehicles to their employees to ensure they keep adequate business records, especially on business mileage, in the wake of increased checks from HMRC.
For the last 12 months the HMRC Business Records Checks program has been working with SMEs to encourage greater compliance in record keeping.
HMRC estimates that 40% of SMEs are not keeping adequate records and this can lead to inaccurate tax returns.
A major area of investigation has been into the recording of business mileage, which has been found to be a weak area for SME businesses. In some cases fines of up to £3000 can be issued where data is found to be inaccurate.
John Thompson chief executive of APHC said: “This is a serious issue facing many SME businesses. Many are simply not aware of the need to accurately record such details or do not consider the recording of details such as business mileage as a priority.
“We want to encourage all those business owners who provide company vehicles to regularly check and record business mileage as well as other details needed by HMRC to ensure compliance and avoid the threat of a costly fine.”
More details on what information SME’s should be recording is available from the HMRC on the following factsheet: www.hmrc.gov.uk/vans/vans-info.pdf.
You can also download a copy of the Business Record Checks Review report here: www.hmrc.gov.uk/businessrecordscheck/review.pdf.