Vehicle technology company ABAX has launched its new campaign ‘Know ABAX, Know The Rules’, to highlight the importance of keeping onside of the HMRC.
The campaign emphasises the existing knowledge gap with companies who operate a van or car fleet and that they could be at risk of tax penalties of up to £3,000 if they aren’t operating in line with the HMRC’s rules and requirements.
ABAX UK Chief Executive Chris Miller said: “Using company vans for private use, like taking your mates to a football match, could mean the employer and employee are at risk of tax penalties for mileage claims and distance and mileage calculations.
“At ABAX we know it’s not easy to keep track of all the tax authority’s rules and requirements and our fully automated ABAX Triplog can help protect your team and company, saving time and money.
“The ABAX Triplog follows the recommendations from HMRC regarding mileage claims for personal and company cars, so you can be sure you are on the right side of any tax penalties.”
HMRC’s Booklet 480 gives transparency to the record keeping requirements for employees who use a van for work, and that they have demonstrated mileage logs both in principle and theory.
Outlined on page 54, paragraphs 14.18 to 14.20 – it states that when no vehicle benefit is declared on an employee’s P11D, HMRC now require the business to demonstrate that no private use has taken place.
Failure to provide information of sufficient detail or quality to support the declaration on the P11D can result in a £3,000 fine for poor record keeping, a requirement to repay all taxes and national insurance owed on the van, with the further possibility of a fine of up to 100% of the amount owed. Further still, HMRC can backdate the fines, penalties and tax owed, with interest payable, for six years.
ABAX recently commissioned a survey through YouGov into the understanding around HMRC tax requirements and it revealed that 56% of employees who drive a vehicle for business purposes were unaware of the tax regime for reclaiming business mileage. It also revealed that 70% of business owners don’t fully understand the tax implications that surround mileage claims.
The campaign – which began on 6 June – will run until 31 July and features print and digital advertising, and radio advertising on talkSPORT. It also gives the chance to win of pair of tickets to a Premier League game of your choice in the 2016/17 season.