Business & Private Mileage
With the requirement to keep accurate records for business and private mileage, Ctrack can help streamline an organisation’s administrative processes by automating and simplifying mileage claims, timesheets and associated reporting, whilst providing drivers with an added sense of privacy.
• Advanced mileage reporting with ability to allocate journeys by day of the week and time of day.
• Automate expenses and timesheets using accurate mileage data
Her Majesty’s Revenue & Customs (HMRC) advises that businesses operating vans must either opt in or out for drivers using the vehicles for private use, so there is no grey area for fleets (there is no option to opt out of private mileage in relation to company cars). Therefore, it is essential to be able to prove that all journeys undertaken for work purposes are genuinely for business, and for companies that opt out, it must also be proven that vans are not being used for any private use.
With the HMRC planning to check the mileage records of thousands of small fleets over the next few years, it is essential that businesses have the necessary processes in place to avoid any added administrative burden or financial penalties.
For example, Benefit in Kind (BIK) value for vans used for private use is £3,090 or £3,671 if free fuel is provided (zero emissions vans currently have a nil taxable BIK value). If private mileage is prohibited within a business and the HMRC finds out that employees are using vehicles privately then a number of additional payments may be due. Firstly, the employee will be faced with an increased tax burden of 20% of £3,671 (40% for any engineers paying tax at that rate), whilst the company will have to pay Class 1a National Insurance contributions of 13.8% of the BIK value (£506.60 per employee who uses their vehicle privately).
We offer a specific business and private mileage management module to ensure companies are able to capture the required information to meet HMRC requirements. With our advanced mileage reporting, it is possible to allocate journeys by day of the week and time of day, whilst our online portal enables drivers to log-in to verify mileage and add notes about individual trips. In addition, vehicles can now be fitted with a switch that the driver can use to define business and private mileage, capturing accurate usage data as well as helping overcome any employee concerns regarding privacy.
The tools also allow organisations to automatically generate timesheets incorporating business mileage only, as well as accurate mileage expenses report that can be exported directly into financial management systems to remove the need for manual driver claims and streamline administrative processes.
Product screen shots
|Ctrack - Business Private Mileage Report||Ctrack Business Private Mileage Report|
What our customers say
“Ctrack’s tracking system has already contributed to driving down our fuel costs and we expect to achieve further business and operational benefits moving forward.”
John Todd, Sunderland City Council