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Businesses do not need to invest in specialist reporting software, following reports that HMRC is set to clamp down on business mileage claims, according to one tax specialist.
The news that HMRC will be investigating company records to tighten fleet mileage claims has unnecessarily worried some firms, said Alistair Kendrick, tax director and company car tax specialist at MH MacIntyre Hudson.
Kendrick commented: "The reports that HMRC will be challenging employers on their employees' business mileage are highly exaggerated.
"If you have robust expenses policies in place and this contains details of the business journey undertaken by the employee so that HMRC can verify this against the mileage claimed, then your company's records are likely to be perfectly adequate."
He continued: "It appears there are a number of specialist providers who are generating anxiety about reporting, in order to sell expensive packages that may not be needed.
"In fact, before adopting such systems you need to consider whether that you will have adequate controls that are in line with those required by HMRC for a dispensation."
Kendrick said that firms should invest in real-time packages if they are convinced "that actual-cost reimbursement compared to paying AFRs/AMAP will save you money".
However, he warned that businesses should not buy new software simply through fear of HMRC clampdowns.
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