Hello my name is Paul and this is my story…
Before I set up my own business I was a Sales Director and travelled throughout the UK frequently. I didn’t previously record my mileage accurately, and often guessed at the mileage I’ve driven, I’ve always entered my Tax return over the years at approximately 18,000 miles.
During one year I had to ask HMRC via self assessment for an update on the current mileage allowance, the Tax office asked how many miles I had entered and felt that the miles entered seemed quite high and asked me how had I recorded this mileage. I told them that they are estimated miles.
HMRC asked me to prove the actual trips that year and had found that I had overestimated these miles; they decided to audit my returns for 3 years and found that I overestimated this mileage too.
The Tax Office calculated the true mileage and charged me £6,000 in owed back tax and penalties.
This is a lesson you must take note of. HMRC can audit your tax at anytime if they think that you have not recorded your mileage or any business transaction properly.
I now use Activus for all my tax and mileage recording, without any worries or stress as I know it’s set up for people like me
Paul – Hampshire