Quick Mileage Expenses Checklist
How to identify if you need help with your mileage expenses policy and process
- Check the Business Personal Split – HMRC feel a 60/40 split is correct i.e. 60% business to 40% personal.
Calculate the business personal split for your drivers and ask yourself if it feels right.
Can’t check the split? If you don’t have enough information to be able to check the bus/personal split then you need our help.
- Random audit of Trips – take a random selection of trips from some drivers and punch the details into a mapping system
such as Google Maps. Does the mileage seem high? Run a sense check across it and check you feel comfortable.
- Cross reference the trips with your other records such as the CRM system. One way that some drivers find to increase
business mileage is by making up trips that have never occurred. Drivers have been caught out when the Sales System shows
different information or when the security system shows a driver was supposedly in two places at once. Even train tickets
to London may correspond with a claim of a drive to London.
- Spot check the mileage rate. Do you let drivers pick a mileage rate, then check it’s up to date. HMRC change it
every 3 months and drivers can easily get it wrong. When we reviewed one fleet recently just one driver from 119 had the
correct rate, with some out by as much as 10 pence a mile.
- Does the mileage claimed correspond with the mileage on the car. If you have company cars then it’s a quick check
but we have seen cars go back to the leasing company with 30,000 miles less on the clock than has been claimed in the same
- Check the approval process. Are claims actually audited or simply approved. One customer recently paid out 1113 miles for a trip instead of 13. Clearly a typo but the driver had missed it and so had the manager. The mileage cost an extra £160, but an HMRC penalty had they discovered this kind of behaviour could have cost £thousands.
So above are a few ideas how to check and review mileage. If you are struggling with any of these and need some help then please get in touch by visiting www.peakmiles.com or by emailing us at firstname.lastname@example.org