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New Tax & Expense Manager from Cybit

Cybit: providing BIK van tax proof for companies

New Cybit telematics app provides operators with HMRC verification tool

BUSINESS VAN operators can take the opportunity to tighten up on benefit-in-kind (BIK) company van tax issues with a new application provided by Cybit for its telematics software.

Cybit says companies can now easily identify potential taxation liability issues and provide proof of business vs private mileage for HMRC.

The new Tax & Expense Manager module for Cybit’s Fleetstar-Online fleet tracking and vehicle telematics solution allows individual journeys to be verified by the driver or business van manager, thus ensuring that records are accurately kept and retained.

“We believe BIK issues are a significant driver in the deployment of telematics,” said John Wisdom, sales & marketing director, Cybit.

“For van operators in particular, it enables you to identify who is behind the wheel if the vans are pooled, and there could be a number of drivers. It’s especially important for crew buses where any number of drivers could be at the wheel,” Mr Wisdom added.

Cybit says the service helps mitigate the risk of any negotiated exceptions being withdrawn by HMRC through the provision of accurate records and proof of journey type.

“Most company van fleets have a zero tolerance on private mileage to comply with BIK rules,” continued Mr Wisdom.

“However, what we often see with telematics is that the policy isn’t being put into practice. So in the world of business vans, the company has a BIK exposure.”

Mr Wisdon said firms could suffer a full investigation and subsequent fine proportional to the amount of tax that an employee would have paid over a period of years.

“Knowing who is behind the wheel is also good for duty of care purposes, too,” added Mr Wisdom. “Often incidents are reported several weeks after an event happens. Telematics can help identify the event precisely.”

Recently vehicle telematics helped one small business avoid a bogus insurance claim. The company was able to accurately identify the position and speed of the vehicle in question – and demonstrate the driver’s innocence (see Vehicle tracking helps a small business dispute bogus claim).

The Tax & Expense Module is available as an value added extension to Cybit’s fleet tracking product Fleetstar-online or is available as a stand-alone service that provides automatic mileage capture.

Further information

If you would like to know more about company van tax, read our Law & Tax article What is company van tax?.