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Mileage Claims?

Jo G
  • Fellow PM.Dip
  • Practice Licence
  • 186 posts
  • # 81703

Hi all,

How do I record my business mileage claims? Is this simply done when I complete a SA? (sorry, I've never completed one) or does it need to be recorded in my books anywhere?

If my "normal" place of work would be a home office, I would assume I could claim 45p per mile (up to 10,000 miles) providing I keep an mileage expenses record of all travel?

Many thanks in advance,

Jo
Peasie
  • Member PM.Dip
  • Practice Licence
  • 481 posts
  • # 81706

For myself I record it as

Dr Motor expenses
Cr Capital introduced 




Similarly I use a flat rate of £3 per week as "Use of home as office" - you can do the calculations based on area of room as a percentage of total area of house and time spent. I just use £3 a week flat rate. I will be increasing this figure to £4 a week from the 6th April 2012 based on an announcement in the Budget which increased the amount from £3 to £4 for employees.

Dr Use of home as office
Cr Capital introduced

EDIT : Never take the first reply to a posting as gospel - best wait a day or two and see if there are any disagreements.

Edited at 09 Apr 2012 12:29 PM GMT
Wilbur
  • Member
  • Practice Licence
  • 106 posts
  • # 81707

Peasiesaid:

“For myself I record it as

Dr Motor expenses
Cr Capital introduced 

Dr Use of home as office
Cr Capital introduced

EDIT : Never take the first reply to a posting as gospel - best wait a day or two and see if there are any disagreements."


I'm not sure that I'd go as far as to disagree, but I do wonder if you are creating work for yourself, for the sake of creating work for yourself!

With regard the motor/mileage expenses, what you are 'claiming' is a SA tax-deductable allowance against expenses already paid elsewhere; fuel, insurance, servicing etc. In my opinion this is much like a Provision for Depreciation account, i.e. no money has actually been paid or put-aside.
Likewise with use of home, this again is an HMRC tax-deductable allowance against a proportion/percentage of the running costs of your home, already accounted for elsewhere...

I hadn't thought of it prior to Jo's question, and I like the idea of keeping a record/account (and those you use make sense), so will be keen to see what other members suggest.

Jo: an alternative, if you can be bothered (and remember to do so for every business journey) is to log business versus personal mileage over the financial year and apportion the costs accordingly. HMRC are happy for you to use whichever method you prefer, but they don't allow for chopping and changing year on year just to increase your allowances (this all assumes that your vehicle is privately owned).

  • Too old to die young...


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