About Peverel has been warned over a potential scam concerning property managers mileage allowances.
Here is how it works:
A property manager visits 4 developments in a day. Development A is 20 miles from his home. Development B is 25 miles from home, C is 30 miles from home and D is 35 miles from home.
He is paid 40 pence per mile to use his car and of course (as is right) he is paid both ways.
If he travelled direct from his home to Development A his mileage allowance would be for 40 miles so residents would be charged 16 pounds for his visit.
Development B, His mileage allowance would be for 50 miles so residents would be charged 20 pounds for his visit
Development C, His mileage allowance would be for 60 miles so residents would be charged 24 pounds for his visit.
Development D, His mileage allowance would be for 70 miles so residents would be charged 28 pounds for his visit.
In total residents from the four developments will have paid for 220 miles at 40 pence a mile, yet the distance travelled is only 70 miles. So a true cost of 28 pounds now becomes chargeable at 88 pounds.
This can easily be verified. Developments that share a property manager should look at their development accounts to see the mileage expenses being claimed and compare that figure with other developments.
