By RAM Tracking on 20 Jul 2017
However, it does not stop there…
The wide variety of business continuity checks that a HMRC audit covers has helped highlight the importance of utilising digital tools, such as vehicle tracking, in order to properly validate that the right fleet management procedures have been followed.
Just this year, HMRC notified ArB of their intention to audit the business – thankfully at a point when the RAM Tracking technical process (and the benefits that come from it) was already being felt throughout its operations. Given the inherent importance to the business that lies in being able to reach customers and suppliers on time, the firm's managing director, Anthony Bethell, had been keen to identify a digital solution that allowed for the accurate tracking and recording of real-time fleet data.
However, where the audit was concerned the earlier strategic choice made vehicle tracking devices played a pivotal role in the audit's successful outcome.
“If this essential tool had not been installed, it would have left me reliant on the entire team keeping manual logs of when my vehicles had been used for private mileage. Without these automated processes it may have resulted in the business being penalised to the tune of thousands of pounds!"
However, the need to use such tools for reasons over and above the possibility of a tax inspection are evident, as Anthony explains:
"Seeing business accountability as a long-term requirement, rather than a quick fix, is vital to the long-term success of any enterprise. Although this requires initial time and investment, the benefits a tracking system provide on a day-to-day basis not only ensure a vehicle fleet is operated legally but also help guarantee that there is an increase in one of the most important attribute where running any business is concerned – time."
To read more about how vehicle tracking can benefit your fleet management when the tax man comes calling, read our financial director's post on fleet management and taxes.