ABAX puts focus on HMRC compliance in new campaign

The ‘Know ABAX, Know The Rules’ promotion has been designed to help van and car fleets realise 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.”

This is supported by HMRC’s Booklet 480 which includes the statement that when no vehicle benefit is declared on an employee's P11D, HMRC requires 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.

A recent ABAX/YouGov survey 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.

Chris Miller added: “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.”

The ABAX campaign will run until 31 July and features 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.

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Natalie Middleton

Natalie has worked as a fleet journalist for over 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day.