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Surge in business mileage claims during pandemic

Research reveals big increase in business mileage while public transport expenses have dropped from 18% to only 5% of total claims but hotel and air travel were the hardest hit sectors, with both now accounting for just 1% of claims, down from 16% and 20% respectively.
VAT on business mileage

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23 October 2020

MILEAGE expenses have increased by more 290%, accounting for 90% of all expense claims as employees opt to use private vehicles for business travel rather than public or other means of transport.

Global expenses app, ExpenseOnDemand, has published new data highlighting new business trends and how much business has changed since the lockdown in March.

The data from thousands of users showed the extent the pandemic has had on certain industries that rely on vital business customers to survive.

Public transport expenses have dropped from 18% to only 5% of total claims but hotel and air travel were the hardest hit sectors, with both now accounting for just 1% of claims, down from 16% and 20% respectively.

These figures show the increasing impact of the pandemic on sectors that rely on critical business trade such as airlines, hotels and many restaurants and bars in city centres. As many companies extend their working from home policy, under the new government advice, these sectors aren’t set to see an increase in business customers until at least early 2021.

The ExpenseOnDemand app allows employees to simply upload and claim business expenses from any mobile device, helping businesses to automate their expenses process in a paperless environment.

Sunil Nigam, Founder at ExpenseOnDemand, said: “The increased activity on the app highlights that many businesses are still very active and continuing to adapt to new ways of running their business. This can be seen with increased business mileage as employees are opting to use their own vehicles for business meetings rather than public transport.

“These trends are being mirrored by our users across the global as the international markets adapt in the same way as UK businesses. We have been developing our app to make it easier for employees working from home to manage expenses and allowing businesses to automate this process.”

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Chris Wright

Chris Wright

Chris Wright has been covering the automotive industry nationally and internationally for 30 years. Following spells with consumer titles he became News Editor of Automotive Management (AM), Editor of Automotive International, International Editor for Detroit-based Automotive News, and Editor of Dealer Update. He has also co-authored several FT Management Reports and contributes regularly to Justauto.com

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