HMRC is continuing its SME Business Record Checks programme.

And one of the items the taxman is looking for in your company’s record keeping is accurate business mileage records.

HMRC says that its checks have revealed 36% of SMEs visited had unsatisfactory record-keeping that required a further visit.

One company that’s decided it wants to have all its business mileage paperwork in order is air conditioning specialist Daikin.

It’s using TomTom fleet management technology to verify VAT fuel claims and compliance with free fuel benefit in kind tax.

Reports enable Daikin employees’ to log business and private mileage – providing proof that fuel paid by the company has not been used for personal use.

“It has proved more cost-effective for Daikin employees to pay for the cost of fuel which is used for personal journeys, rather than having to incur Car Fuel Benefit tax for fuel paid for by the company,” said Daikin’s general affairs manager Richard Truttero.

“This approach is also saving Daikin thousands of pounds annually in fuel and National Insurance costs. Accurate logs of the different mileages clocked up are crucial however to ensure errors in fuel usage are not made, VAT claims on fuel costs are correct and that inappropriate tax claims are avoided.”

In what seems a fortunate by-product, the TomTom fleet management system has also enabled Daikin to schedule appointments more effectively and save on fuel costs by identifying clusters of clients for more cost effective visits.