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Charity paying travel expenses

  • Fellow PM.Dip
  • Practice Licence
  • 86 posts
  • # 80339

I'm sorting through the income and expenditure for a charity, and I've found that they've paid for petrol for a privately-owned car directly from their bank account. My understanding was that the trustee should be recording their mileage and claiming expenses at 45p per mile, and not paying for petrol which they now can't prove has been used for charity purposes - is that correct?

If that is the case, and the payments for petrol shouldn't have been made using charity funds, how do I account for those payments? If it was a business I would record it as drawings, but clearly that's not possible here.

Grateful for any help!

  • 698 posts
  • # 80394

Hi Kate

Charities can be a nightmare area as there are some quirky rules that relate specfically to them the best bet is to contact the ICB technical helpline and seek their advice.


Kind regards
Stuart

  • Fellow PM.Dip
  • Practice Licence
  • 86 posts
  • # 80443

Thanks Stuart - I did try them a couple of times on Friday but couldn't get through to the person I needed to speak to. I'll try again today.

Thanks

Kate

  • 698 posts
  • # 80527

Hi Kate

Did you ever get an answer on this.

Kind regards
Stuart    

  • Fellow PM.Dip
  • Practice Licence
  • 86 posts
  • # 80529

Hi Stuart

Yes, I spoke to someone on the technical helpline on Monday, who confirmed my suspicions that the charity should be keeping a mileage log and not simply paying for petrol. He said that the transactions that had already gone through should be classified as miscellaneous expenses and that I should make a note explaining what had happened, in case there are any queries in the future.

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