At The Miles Consultancy, data is in our DNA. It’s what we do, every day!
Since 2020, The Miles Consultancy has managed over 2.7 billion business miles for our customers across the globe. But sometimes, the data tells us things you wouldn’t expect. Here are five insights we picked up on after ‘looking under the bonnet’ of corporate mileage data.
1. Old habits die hard when it comes to mileage logging
Since covid, business mileage once again increased as employees returned to field work and site visits. When TMC reviewed customer data prior to using the Mileage+ solution, we identified many instances of employees estimating their mileage using rough averages and rounding.
This not only means corporates are overpaying when it comes to business mileage, but they are exposed to HMRC fines. A lack of proper control and accurate record-keeping significantly increases the risk of falling out of HMRC compliance, potentially leading to costly penalties for both employees and the business.
Our data shows that once automated mileage capture is integrated, customers save an average of 15.4% off their fuel bills.
We also identify instances of potential vehicle odometer meter rounding through proactive audits.
2. Fuel cards are often used incorrectly (and it’s costing companies big)
Fuel cards have long been seen as a convenient solution for managing business fuel spend and help provide both a cash flow benefit for employees and support on VAT recovery for businesses. They do, however, come with hidden costs and a surprising lack of control.
From inflated pump prices at premium sites to transaction fees, card charges and non-fuel purchases slipping through the net, fuel payment cards can quietly cost businesses far more than expected.
As fleets transition to electric vehicles, similar challenges are emerging around EV charging reimbursements, with public charging rates varying wildly and some drivers unknowingly paying over the odds. There’s also the possibility of additional fees and overstay fines.
That’s why TMC’s audits play such a crucial role, by reviewing card usage, highlighting out-of-policy spend and ensuring transactions align with company policy. TMC help businesses take back control, improve compliance and avoid unnecessary costs. We look at the bigger picture, not just the card transactions.
3. It’s not a one size fits all approach!
EV adoption is accelerating in the car area, whilst challenges remain in making sure employees are fairly and accurately reimbursed for their business mileage. However, commercial vehicles are still playing catch up.
There’s no shortage of electric car options, but when it comes to covering the costs of business mileage, employees can be left out of pocket. This is especially seen in many cases with EV drivers who are reimbursed at the HMRC AER, currently at 7p. Some companies have opted to pay higher rates than the HMRC AER and settle the tax and NI liability on behalf of the employee, whilst some are choosing to apply actual cost.
For commercial vehicles, the challenges remain the same. Range, charging access, vehicle availability and operational complexity all make the transition harder for vans and larger fleet vehicles.
The good news is that many of TMC’s partners are stepping up by reducing charging costs, increasing wider coverage and proactive support for EV drivers. We’ve seen more clients looking to provide payments cards to support employees and allow for us to calculate actual costs of business mileage. It’s important to ensure that clients follow HMRC guidance on managing business mileage reimbursements and private use recovery.
4. Grey fleet vs company cars
As fleets evolve, we’re seeing more businesses move away from traditional company cars towards a more flexible mix, including car allowances, cash options and salary sacrifice schemes for EVs. It’s a shift driven by employee choice, tax benefits and changing mobility needs.
But with that flexibility comes a growing grey fleet as employees use their own vehicles for business travel. Whilst it offers freedom, it can also create real challenges for employers around visibility, compliance and risk.
Knowing what vehicle someone drives, whether it meets company policy, is insured for business use and is roadworthy, that’s often far harder to track than a company provided car. Then comes the pay-and-reclaim method, which own car users often adopt to recover costs for business usage. Having said that, many offer payment cards to support actual cost reimbursements. The complexities can be tough to get a grip of.
5. Advancing technology
Telematics and in-vehicle camera technology have come a long way from simply tracking vehicle locations. Today, this tech is playing a vital role in driver safety, duty of care and operational efficiency.
Telematics systems provide many valuable insights, far beyond just the standard location, including driving behaviour, speeding, harsh braking and even real-time crash detection. Similarly, in-vehicle cameras are increasingly being used not just for incident evidence, but for proactive driver coaching and improving safety standards.
These tools are super helpful to those managing a fleet, but only when there is both flexibility in being able to harness all of the different data streams and a simple user experience for the employee.
Want to know what your mileage data could be telling you?
