MILLIONS OF UK BUSINESSES FACE PENALTY CHARGES AS HM REVENUE STALKERS SCOUR SUPERMARKET CAR PARKS LOOKING FOR WHITE VAN MAN’S PRIVATE SHOPPING TRIP

FOLLOWING the recent changes in the tax liability laws (6th April 2007) for company vehicles used privately out of hours, a recent poll carried out by tracking company http://www.remoteassetmanagement.co.uk shows that almost one in five fleet owners surveyed were still unaware of how the tax change will affect their business and employees.

Drivers, who use company vehicles for personal reasons, could face a £3,500 van benefit charge, which represents a 600% increase over the previous year’s liabilities in addition to the NI contributions associated with company vehicle use. Employers can also land themselves in hot water with NI contributions and a penalty for any incorrect declarations made.

The new law does state that reasonable use may be accepted, such as a quick visit to the newsagents on the way to work, but shopping trips in either work time or out of hours is a taxable activity.

“I’ve heard it said many times that revenue collectors are preparing to report company vehicles that are parked up in supermarket car parks, landing company van drivers with huge tax penalties,” said Martin Davies, Director at vehicle tracking company remoteassetmanagement.co.uk.

“While the thought of an undercover revenue inspector jumping out on unsuspecting van drivers, as they enter a car park, might sound a bit like a sketch from Monty Python, there is a very real concern for the drastic change in the way the HMRC will penalise van users. There’s a lot of money to be claimed, so I do expect revenue collectors to be very keen – maybe bordering on over zealous - to ‘nab’ as many drivers as they can!”

Just as traffic wardens have been reported to rake in extra pounds by fining vehicles that are just seconds over ticket times, so it is expected that the HRMC will be extremely tough on companies that are unable to prove where, when and how their vehicles are being used out of hours. However, the only real targets are fleet managers that don’t have a tracking system!

“All of our customers can relax,” continued Davies. “We’ve recently released version 3.2 of our system, which was specially developed to take these tax issues into account, providing extra functionality. The RAM system tracks all vehicle movements and relays the information in real-time to the fleet manager or system operator. The information in our system is presented in an easy to read report, providing unarguable evidence for anyone incorrectly accused of using vehicles for private mileage.

“For those without a tracking system, be aware that – based on our experience – you could be losing hundreds of pounds per vehicle each month through wasted fuel, communications costs and unproductive scheduling. The taxation issue is just another common sense business reason to fit a tracking system, before the Revenue comes knocking on your door.”

ENDS
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Notes to the Editors

Remoteassetmanagement.co.uk - was formed in 2004 with the single aim of simplifying the offerings of a telematics solution, for a mass-market appeal. With many years experience between them, the team built a web-based system that many have described as ‘incredibly simple yet highly effective’. Quality of service is important to RAM, who specify that all system upgrades are delivered completely free of charge to all customers. With so many factors pushing fleet costs up, RAM’s solution has helped reduce outgoings whilst increasing productivity and has been proven successful time and time again across a multitude of fleets of varying sizes.