Mileage log book

Don't risk a penalty!

Any tax related information is meant as a reference only.1

HMRC regularly issues penalties for businesses who fail to comply with its rules, in line with the potential tax revenue lost, and the degree of responsibility or guilt.

Learn how Susan and her employer could have avoided penalties totalling almost £36,771 over six years (for just one vehicle)

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Susan has been driving a company car for the previous six years, which was reported on her employer’s 11D form, and as such, she has paid all necessary taxes, with the company paying National Insurance charges on time.

However, Susan’s employer did not report fuel provided for private journeys, as they did not have sufficient controls in place, such as a vehicle log book, to distinguish between private and business fuel. The car is diesel-powered and has emissions of 170g/km.

The maximum penalty to Susan's employer can be up to 100% of the unpaid tax and NIC due to a failure to report the benefit in kind. However, in practice we expect the penalty position to be in region of 30%.

With proper forward planning and the right controls in place, Susan and her employer could have avoided these penalties.

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1 While TomTom Telematics (TTT) and Grant Thornton UK LLP (GTUK) have sought to ensure that the information contained in this guide is accurate, the content is not intended to be legally or technically comprehensive and neither TTT nor GTUK shall be held liable for any errors or omissions. The contents of the guide should be used for reference purposes only and both TTT and GTUK recommend that no action be taken on any matter in the guide without the reader taking independent professional advice. The information in the guide is based on current tax rates, legislation and HMRC's practice as at the date of the guide which may be subject to future change. The information in this guide has not been prepared to take into account the reader’s individual circumstances. To ensure compliance with your tax obligations, always seek individual advice from a legal counsel or a qualified tax compliance specialist. For the avoidance of any doubt, TomTom Telematics does not warrant or imply that the use of its products or services can in itself guarantee compliance with your tax or legal obligations.