Company vehicles mileage records

mgrant Registered Posts: 7 Regular contributor ⭐ ? ⭐
Hi All,

I have just undertaken a bookkeeping contract to cover maternity leave with a limited company which have several company vehicles. Recently they have sent out declarations to employees with company vehicles to sign in agreement that the company vehicles will not be used for private use, but they have no mileage logs. In my experience as a bookkeeper for a difference company I was advised that it is a requirement of HMRC to keep mileage logs for company vehicles. This is to prove that they are not being used for private use as they are not disclosed on the P11d as a benefit in kind.

Please can somebody advise if I am correct as their company accountant has advised that they do not need to keep mileage logs but i am concerned that they may get inspected and if they do will their business record keeping be sufficient with just a signed declaration? How do we prove that they do not use them privately?

Thanks in anticipation of help!!!


  • Carole
    Carole Registered Posts: 57 ? ? ?
    As I understand it HMRC do require mileage records, especially for cars rather than van. If the company operates a tracking facility through a 3rd party then this is usually sufficient for mileage proof for zero private use. Of course there would have to be no private use.

    This is what I was told anyway by a company trying to sell me tracking!!

    Are the cars pooled? Are they returned to the company premises most nights? If they are allocated to individual employees and used to travel between home and the main office then they would be classed as a BIK in HMRC's eyes.
  • mgrant
    mgrant Registered Posts: 7 Regular contributor ⭐ ? ⭐
    Thanks for your response Carole

    They are not pool vans they are allocated to engineers but are not suppose to be used privately. Commuting as I understand is allowed tax free. The external accountants have said that they are not a benefit in kind as they are not allowed to use privately only business use is permitted + commuting. I have been told the same by a tracking company but the accountants have said this is just to force a sale.

    I have advise that the best way forward would be to fit trackers in the vans but as I am only filling in for maternity leave I think they are reluctant to take my advice.
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