Unless you use the scale charges, every claim for fuel VAT must be supported by mileage logs. It is very important to ensure that these records are accurate and that they comply with HMRC requirements.
By maintaining an accurate log of private and business mileage through the mileage capture system, we can determine how you should report your VAT reclaim to ensure you receive the most amount of VAT back from HMRC. TMC has found that when VAT is claimed on an actual basis the average corporate sees an increase of about 40% on its recovery. We can review the VAT on your business fuel spend on a quarterly basis and prepare a VAT reclaim report claiming whichever was the higher.
Net cash calculations
If your business offers drivers a cash allowance in lieu of a company car then you can make immediate savings in Class 1A National Insurance by making the most of the Approved Mileage Allowance Payments (AMAPs).
By changing the way the cash allowance and mileage expenses are paid both your business and your employees could be better off. The employee relinquishes part of their cash for car allowance in favour of tax-efficient reimbursements via AMAPs.
The adjustment to the cash allowance reduces the employee’s liability for income tax and NI while the mileage allowance payment is free from tax and NI contributions. As well as its advantages for employees, the process generates Class 1A NI savings for your business due to the reduction in cash allowances.
Each month, we use the captured mileage to create the necessary payroll reports for your business.
Fuel benefit in kind
Providing employees with a fully expensed fuel card is a popular benefit, however in most instances, employees are generally left to determine whether they are better to have the benefit, or to repay the private element of their fuel use, thereby saving taxation on the fuel scale charge.
By using our mileage capture and auditing solution, businesses will be able to ascertain which drivers should “buy-out” their private fuel and which drivers benefit from remaining on the scheme. At the start of this process, all drivers receive a personalised statement along with a recommendation as to which scheme would provide the most efficient solution for their individual circumstances. The statement also provides each driver with the steps that they need to follow if they wish to accept the recommendations or not.