The threat is being highlighted by GPS tracking provider RAM Tracking following reports the Government has tasked HMRC with raising an additional £7bn a year in tax revenue, recruiting an additional 2,500 compliance officers to enquire into taxpayers affairs’, including business mileage payments.

A HMRC pilot study in 2011 found 40% of small firms did not keep adequate business records, with one of the weakest areas being business mileage. An estimated 20,000 Business Record Checks will be carried out this year on SMEs, increasing to 60,000 by 2015. Overpayment of business mileage, even unwittingly, is equivalent to providing employees with a private fuel allowance and carries weighty liabilities for tax and national insurance payments.

In addition to the associated business disruption, businesses can face fines of up to £3,000 per driver, backdated for up to six years if claims are found to be inaccurate.

In response, RAM Tracking is highlighting that many businesses already have access to the information needed for mileage recording through their vehicle tracking software but are unaware how to access it.

In addition, the company says it can guarantee instant access to journey data for three years.

Chris McClellan, director and co-founder of RAM Tracking, said: ‘Implementing a vehicle tracking system such as RAM's not only ensures all mileage is recorded, it also provides the business with an online management dashboard where reports can be collated and downloaded within seconds. A quick and easy way to save your business money, increase driver safety and ensure you and your drivers are tax compliant.’