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Expenses etc

Acorn2oak
  • 167 posts
  • # 76715

Hi


What is your advice with regards to recording petrol through accounts where there is an element of personal use.  


I have been told that petrol should be recorded as drawings and then an adjustment made at the end of the year in accordance with the mileage rules.


Also how would you treat car insurance and road tax?


How would you account for the asset of the car when it is used for both personal and business use?


Any help appreciated.


Regards


Acorn        

  • "Helping small acorns become large oaks"

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kjmcculloch
  • 1159 posts
  • # 76720

If the business is under the VAT theshold its often a lot simpler to claim the Approved Mileage Allowance Payments of 46p per mile for the first 10,000 miles and 25p per mile thereafter.

If you want to go down the aportionment route there is a good spreadsheet to help you calculate it here: http://www.mranchovy.com/download/se-car-calc

Kris 
Geoff
  • 180 posts
  • # 76721

I thought that the mileage rate was 45p per mile for the first 10,000 (for 2011/12).


http://www.hmrc.gov.uk/rates/travel.htm
kjmcculloch
  • 1159 posts
  • # 76722

You're right, I think my finger slipped.  Lets hope I dont do that on a tax return oops

Kris 
Infinite
  • 82 posts
  • # 76780

I have what may be a silly question and, although not relating directly to Acorn's original post, does relate to expenses and VAT!

Where there is a (UK) VAT registered business and foreign travel i.e. hotels is expensed, how is the foreign VAT accounted for.  I suppose my question is, do I ignore the foreign VAT element and post the total amount?  This is in relation to Manual bookkeeping.

 
Timm
  • 88 posts
  • # 76884

Overseas expenses. I worked for 15 years for a UK company and was based in Bangkok.I travelled around South East Asia and booked flights and hotels on my company credit card. In fact it was company policy to use credit cards rather than petty cash even for very small items. My company credit card was issued by the companies UK bankers. At month end I completed a spreadsheet expense form, posting the GROSS amounts. One of our office girls would check it against receipts, post internal N/C's and zip file to head office. We only heard if the expenses did not balance with the credit card statement. We had offices worldwide and this was the system used by our company finance department. Local VAT was never mentioned. Its an expense to the company it could not reclaim. 
 
  • Member PM.Dip
  • 113 posts
  • # 76886

Hi Timm

I don't think it's quite as simple as saying the vat can't be reclaimed. I'd check the specific rules for the country in question, the nature of the expense and the amount you wish to reclaim.

hth. 
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