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Jamie Lawrence


Insights Director

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News: inaccurate mileage claims could open firms to HMRC fines


Close to half of UK business drivers surveyed in a new study admit to submitting false mileage claims.

This is according to new research from TomTom Business Solutions, which found 46 percent of drivers have over-estimated their mileage when claiming expenses. Over a third (35 percent) do so regularly.

This is despite the fact that companies and their employees are required by law to keep accurate mileage records for Benefit in Kind tax compliance. Just 10 percent of respondents have been challenged by their employers over the accuracy of their mileage claims.

Almost three-quarters of drivers agreed with the statement that keeping mileage records and making claims is a laborious and time-consuming task.

Expenses are a significant administrative burden but responsibility extends far beyond administration – companies are legally responsible for keeping accurate records and HMRC can impose fines on firms and drivers that don’t, resulting in damage to reputation and employee morale.

HR must continually update its expense policy and make sure any non-compliance is investigated – tiredness, for example, may be the reason for submitting inaccurate claims. The method used to submit claims should also be updated. TomTom’s research suggests that older methods, such as pen and paper, could lose employers around two hours a month per driver.

“It is worrying that such a large proportion of UK business drivers are over-estimating mileage claims because it exposes their employers to serious financial consequences,” said Giles Margerison, Director UK and Ireland for TomTom Business Solutions.

“HMRC has the power to impose significant fines on both drivers and companies found guilty of inaccurate records, so the onus is on businesses to ensure relevant checks are in place to guarantee accuracy.”

Author Profile Picture
Jamie Lawrence

Insights Director

Read more from Jamie Lawrence

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