Business Mileage Management – ExpenSys
Making Mileage Easier
Manual control of business mileage consumes a disproportionate amount of resource for busy finance and HR staff. ExpenSys is designed to automate this activity to reduce the time and resource required, and therefore also the cost.
Business Journeys are captured in specially designed, configurable forms which are easy to use. Regular journeys may be stored and recalled, with distances set individually or centrally and multiple journeys may be entered. ‘Passenger Rate’ is supported if required and ‘Home to Site’ mileage may be identified and recorded for tax purposes.
Private & Company Cars, Cash Allowances
ExpenSys supports company-owned, leased or privately owned vehicles, together with ‘Car Allowance’ or ‘Cash Option’ schemes.
Details of multiple vehicles are held in the database, and mileage is reimbursed according to the specification of the vehicle used and the particular ‘Vehicle Scheme’ to which the driver belongs. Vehicle data may be imported from external systems if required.
Centrally Controlled Rates
Mileage rates are not entered or selected by the driver. They are centrally controlled and will be applied automatically according to the date of the journey and the status of the vehicle. They may be referenced by miles or kilometres, cubic capacity or horse power and may be maintained in any currency. Separate rate tables may be maintained in respect of each ‘vehicle scheme’.
Threshold rates (such as the HMRC recommended threshold for mileage over 10,000 miles in a tax year), may be maintained in the system as determined by the customer and will be applied automatically to journeys as the threshold is reached, and then reset automatically at the end of the current tax year.
Specific rules regarding car rentals apply in different jurisdictions. For example, VAT recovery thresholds in countries such as UK, France and Germany are automatically applied and amounts for rental and insurance may be captured separately to avoid inappropriate over-recovery of VAT.
Monthly statements from major fuel card companies may be uploaded if required. The system supports multiple vehicles and changeovers from one vehicle to another.
Private Mileage Contributions
Odometer readings of company controlled vehicles may be maintained and updated from month to month. The difference between the total distance of business journeys and the month-end odometer reading is calculated to be the ‘private’ element.
If drivers are required to reimburse amounts in respect of private journeys, the system will fully automate this process. Alternative methods are supported. For example; money may be reimbursed by amount per mile/km, or as a percentage of overall spend.
Addresses & Post Codes
Journeys may optionally be entered by address or post code. A mapping facility automatically calculates the expected distance travelled. An override is available in the event of diversions.
Journeys where the override distance entered by the driver differs from the distance calculated automatically by the mapping facility may be highlighted in the journey record and in reports.
After processing, the system provides Business Journey reports, which can be configured to show individual business journeys or amounts reimbursed.
The result will be that journeys will be easier to record for drivers, and management will have a much clearer understanding of journeys and cost.