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March 21 2013
Almost half of UK business drivers surveyed in a new study admit to submitting false mileage claims.
The research conducted by TomTom Business Solutions found 46 per cent of drivers have over-estimated their mileage when claiming expenses, with 35 per cent doing so regularly.
Companies and their employees are required by law to keep accurate mileage records for Benefit in Kind tax compliance, but only 10 per cent of respondents have been challenged by their employers over the accuracy of their claims.
‘It is worrying that such a large proportion of UK business drivers are over-estimating mileage claims because it exposes their employers to serious financial consequences’ said Giles Margerison, Director UK and Ireland for TomTom Business Solutions.
‘HMRC has the power to impose significant fines on both drivers and companies found guilty of inaccurate records, so the onus is on businesses to ensure relevant checks are in place to guarantee accuracy’
The research, conducted among company drivers not using an automated mileage recording system, revealed 70 per cent of drivers find recording and submitting mileage a laborious process.
For half of those questioned the process takes at least two hours each month, with a further 20 per cent spending between one and two hours.
Paper proved to be the most popular format for keeping mileage records (64 per cent), while 18 per cent of drivers record and submit records via their computer and a further 15 per cent use a mobile device.
‘Antiquated systems for recording mileage means a business employing 100 drivers, for example, could be losing in the region of 200 hours each month’ added Giles.
‘This lost productivity can have a major impact on a company’s ability to remain competitive in an increasingly challenging economic environment. Advanced fleet management technology helps to simplify the mileage registration process, allowing businesses to guarantee the accuracy of records and maximise efficiency’