News & Views from MyExpensesOnline

How Can Effective Expense Management Help You Pass an Audit?

Take a look at our handy HMRC audit survival guide, to find out how MEO can help keep your expenses organised and compliant, in preparation for the auditors.

 

Records

Auditors love records! They want to see proof, and when it comes to expenses, excuses won’t cut it! Missing receipts raise concerns during an audit, as they are looking to see that all tax obligations have been met, and in the worse case scenario, if they detect that that there are dishonest practices, they will launch an investigation.


How can MEO help?

MEO aims to ensure that all our clients have transparency in their expenses. Expenses claimed by employees using our system, need to be accompanied by receipts, or a reason why not (which requires management approval). Once this receipt is uploaded, the proof required by the auditor is there on the system. The paper copy can be thrown away.

 

 

Mileage Claims

Mileage is notoriously difficult to track and manage. A HMRC auditor will be looking to see proof that the mileage expenses which you have recorded, are; a) as accurate as possible, and b) the journey made has been necessary, and incurred solely for business purposes.

This can be a tricky area to get right to begin with, and then to provide proof creates another set of problems. Of all the expenses claimed, mileage is so often incorrect, and excessive claims are not only costly, but difficult to justify to an auditor.

 

How can MEO help?

MEO strive to promote an honest system when it comes to all expense claims, but particularly mileage. Mileage claims made by employees are accompanied by a purpose of travel, then using a combination of MapQuest & Google Maps, MEO requires the user to enter the start and end destination. Using this information, the system will calculate the best route and miles incurred.

 

Of course, there can be many justifiable reasons why the actual route taken was different to that calculated by the system, such as roadworks or police diversions. For this reason, MEO will also allow the user to factor in alterations to the route. It is then down to the person who approves the claims, to check if this is valid and reasonable to claim.

 

Using this system, an auditor can see the purpose of the travel and the accuracy behind the calculation of the claims.

 

 

Keep on top of HMRC Rate Changes

It is important to keep up to date with the various mileage rates published by HMRC.

 

How can MEO help?

MEO offers a HMRC rate update service which will ensure that your rates are always HMRC compliant.

 

Obviously, an auditor will not only be looking at your expenses, but perhaps reading this has identified areas of your expense claiming process which could cause concern for an auditor, and you are keen to find out way to solve this. Contact our team at MyExpensesOnline today to request a free, no obligation demonstration of our system.