Glossary

Glossary 2017-04-01T17:57:19+00:00
If you pay your employees for business miles that they travel for your company it is likely that they will be overestimating or adding extra miles to their mileage claims. Industry statistics show that on average business mileage is overestimated by 24.7%.

This overestimation could be costing your company thousands of pounds every year, and can be quickly and simply eradicated by using MileageCount to accurately capture business and private mileage.

Not only are employers paying for overestimated or fraudulently added business mileage but they may also face the risk of a large fine from HMRC if they investigate and find your mileage records and reports to be lacking or inaccurate.

There are typically savings of between 40% & 50% on retail dealer prices on regular servicing and maintenance with similar savings on tyres & MOT tests.
Whole life vehicle costs

Whole Life Cost – also referred to as Total Cost of Ownership and Total Cost of Motoring – is the best way to capture, manage and control all the costs associated with running company cars and vans. Yet, as few as one in five organisations use this strategy to save money and cut costs.

MileageCount now brings you the opportunity to:

  • Calculate the whole life costs for your own fleet
  • Formulate car and van lists, and buying policies, based on accurate forecasting data
  • Negotiate better deals with dealers and manufacturers based on independent forecasts
  • Measure your actual cost performance – and savings – against the forecast budget
  • Save money for your employees on Benefit in Kind taxation
  • Establish a green fleet policy

Whole life cost calculations give you lifetime costs, yearly costs, monthly costs or costs per mile for different vehicles based on:

  • Depreciation
  • Interest Costs
  • Service and Repair Costs
  • Fuel Costs
  • Road Fund Tax
  • Employer’s National Insurance Contributions

Through MileageCount Ultimate, you can get special access to its Whole Life Costs calculators, which are supported by independent data from Clear Vehicle Display (CVD). This will enable you to build your own vehicle costing database and store it in the Cloud with your own unique access. Alternatively, you could work with our consultants to build or review your fleet policy based on Whole Life Costs. Then, we could advise you on further ways to save money, and help on implementing a cost-cutting policy.

The MileageCount Ultimate GPS mileage capture dongle provides the driver and the business with complete and accurate business and private mileage information.

It is simple to use – just plug-in and off you go.

Accurate to within 10 metres, this GPS tracker won’t let you down.

Reduce mileage claim, recording administration and fuel bills with more accurate reporting.

Free to download for all business drivers


The MileageCount smartphone application provides drivers with an easy and simple method to capture and report journey mileages.

It is simple to use – just download the application from the iTunes App Store free of charge (and soon the Google Play Store for Android devices). Drivers can record journeys within the app and upload to their online MileageCount portal (when registered with a MileageCount Ultimate account priced just £3.50 per month per driver).

By using your smartphone’s in-built GPS system, you can accurately record journeys with no extra hardware.

Reduce mileage claims, reduce administration and reduce fuel bills with more accurate reporting.

See what the application looks like

Free to download smartphone app

All drivers can download and try the smartphone app for free, but for full access to the features drivers need to be registered with a MileageCount Ultimate account (from just £3.50 per month per driver).

MileageCount reserve the right to revoke free access to the app at a future date. For full terms and conditions please click here.

Her Majesty’s Revenue and Customs (HMRC) have guidelines on mileage reporting. If your company mileage records and/or payments do not meet their guidelines and HMRC find them to be inaccurate you may be investigated and fines can (and do) reach six figures.

Employer Responsibilities

As an employer, you have certain tax, National Insurance and reporting obligations if you cover the costs of your employees using their own vehicles for business travel.

There are 2 separate schemes used to deal with these mileage expenses – one for tax and one for National Insurance.

Visit the HMRC site for more information >

Or download their guideline booklets relating to expenses payments and employee travel below. Remember to check the HMRC website for updated guidelines.

HMRC Guide to Expenses and Benefits >

HMRC Guide to Employee Travel >

What if HMRC investigate and find reports to be inaccurate?

Businesses are paying fines and penalties totalling hundreds of thousands of pounds to HM Revenue and Customs (HMRC) after investigations revealed inadequate business and private mileage record-keeping.

Read more on Fleet News >

Rules for tax

You won’t have to deduct and pay tax on any payments to employees, but you might have to report them depending on how much they are.

Mileage Allowance Payments

Mileage Allowance Payments (MAPs) are what you pay your employee for using their own vehicle for business journeys.

You’re allowed to pay your employee a certain amount of MAPs each year without having to report them to HM Revenue and Customs (HMRC). This is called an ‘approved amount’.

Work out the value

To calculate the ‘approved amount’, multiply your employee’s business travel miles for the year by the rate per mile for their vehicle.

Tax: rates per business mile

Type of vehicle First 10,000 miles Above 10,000 miles
Cars and vans 45p (40p before 2011 to 2012) 25p
Motorcycles 24p 24p
Bikes 20p 20p

Example:
Your employee travels 12,000 business miles in their car – the approved amount for the year would be £5,000 (10,000 x 45p plus 2,000 x 25p).

It doesn’t matter if your employee uses more than 1 vehicle in a year – it’s all calculated together.

Employee Responsibilities

There are 2 separate schemes used to deal with mileage expenses – one for tax and one for National Insurance.

Visit the HMRC site for more information >

Or download their guideline booklets relating to expenses payments and employee travel below. Remember to check the HMRC website for updated guidelines.

HMRC Guide to Expenses and Benefits >

HMRC Guide to Employee Travel >

HMRC Mileage Payments

Check HMRC website for the latest rules >

Approved amounts

To calculate the ‘approved amount’, multiply your employee’s business travel miles for the year by the rate per mile for their vehicle.

Tax: rates per business mile

Type of vehicle First 10,000 miles Above 10,000 miles
Cars and vans 45p (40p before 2011 to 2012) 25p
Motorcycles 24p 24p
Bikes 20p 20p

Example:
Your employee travels 12,000 business miles in their car – the approved amount for the year would be £5,000 (10,000 x 45p plus 2,000 x 25p).

It doesn’t matter if your employee uses more than 1 vehicle in a year – it’s all calculated together.

To find out how to reduce your risk of HMRC fines, contact us >

Savings typically up to 4p per litre saving off the national average diesel price and up to 10p per litre savings at motorway service areas. Dependant on area and station.
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