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Bookkeeping entries for mileage

  • Member
  • 2 posts
  • # 72595

Hi,

I've just started up as a bookkeeper and have taken on 2 clients so far. One of them claims mileage on their fuel expenditure and my course only really covered charging the whole fuel expense, so I'm hoping someone could enlighten me on fuel expenses please!

Many Thanks

Viv

  • 698 posts
  • # 72597

>
> Hi Viv

We need to establish a few facts

1 is it their private car or a company car.

2 what is the milage rate being claimed.

If you are using your own car you can claim 45p per mile the first 10000 miles and 25p per mile thereafter. The milage must be business and not personal and detailed records must be kept.

The revenue are also checking the insurance on the car so make sure the vehicle is insured for business use.

The above is a very very basic outline.

Cheers
Stuart
>
>

  • Member
  • 2 posts
  • # 72935

Hi Stuart

Thanks for you reply and apologies for the delay in my reply, I've had problems with the internet but back online now! In answer to your questions:

1. It's a private car.
2. The info they have provided on their mileage for the last quarter is as follows.  Total 2117 miles. They've also told me that they average 35 miles per gallon at £1.40/gallon.

Any info you can give me would be a great help - thank you!
Viv

  • Fellow PM.Dip
  • Practice Licence
  • 17 posts
  • # 73409

Hi Viv

The mileagae is as Stuart pointed out 45p per mile for the first 10,000 miles. The mileage claim takes into account not only the fuel, but also all the other costs of running a vehicle. It does not matter how much they average a gallon or the cost of the fuel put in.

Also you need to make sure the the 2117 miles does not include any commute to the office if this is at a different address

Therefor the claim is 2117 miles x 45p = £952.65 


 Kind regards
Karen

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