Forum

• # 83681
• Tue 03 Jul 2012 12:13 PM

Hi, 

I know the subject of mileage and Fuel allowances has come up loads of times on the forum but can anyone answer me categorically the following:

A sole trader has claimed 254 miles @ 40ppm on an invoices to his client.

"Because this is 5p below the approved mileage allowance of  45ppm am I presuming correctly that he can claim tax relief of the difference (5 ppm) or can he claim the whole 254 miles @ 45ppm on the tax return?"

Also:

He has also given me a couple of fuel recipts...

"If mileage is not claimed on any invoices to clients for that month, would it be acceptable to put through the fuel receipts?" (we are talking £10 to £20 at a time which would not be excessive for the journey in his own vehicle)

(He doesn't keep a milage log... but I will encourage him to do so from now on)

Any views on this would be appriciated.
:-)

 

• Tash :-)
• 
  Quote
  

• # 83686
• Tue 03 Jul 2012 03:22 PM

Hi Tash,

I'm newly qualified so please don't take what I say as gospel, wait to see what the consensus of opinion is from the forum.

It it was me, I would include the 40p per mile as per the invoice to the client as sales income & then the 45p per mile as mileage expense.

As for can he claim for petrol receipts - my answer would be no.  You cannot mix & match how you claim for business motor expenses - he either claims the pence per mile for business use of what is I assume his own vehicle or he records every expense (tax, insurance, petrol receipts, servicing, repair etc) & claims a % of the overall expense depending on the split of annual miles between business & personal use.  

Either way, he really should be keeping a mileage log or how can he justify any claim?


Hope this helps, would be interested to hear other people's thoughts.

Rgds,
Jo           

• 
  Quote
  

• # 83690
• Tue 03 Jul 2012 04:36 PM

Thanks Jo,

I like to know what others take on expenses are as it's a never the same for each client.

I have asked him to keep a miles log, as he will be better off claiming the allowance per year because its only 1 of the people he works for that allows him the milage - so he will loose out ultimately by not keeping a log!

Your input is always appriciated, lets see if anyone else will contribute?

:-) 

• Tash :-)
• 
  Quote
  

• # 83691
• Tue 03 Jul 2012 04:36 PM

Hello Tash,

Mileage log! I've never yet seen one. I'm beginning to think they are fictitous :)

Go with Jo on this one. Think of the mileage on the invoice as part of the sale only and with regard to travel its expenses or mileage, not both for the vehicle.

Regards
Mark

• 
  Quote
  

• # 83692
• Tue 03 Jul 2012 04:42 PM

Thank you Mark,

I don't understand what people find so difficult about keeping a note book in the car  ?

These mileage logs are a rare breed ;-)

 

• Tash :-)
• 
  Quote
  

• # 83699
• Tue 03 Jul 2012 06:34 PM

Hi all,

I used to have trouble getting my sole trader clients to keep a mileage log, until I said that if I didn`t see one then I wouldn`t be posting any mileage expenses to Sage. I also roughly worked out how much extra tax they would be paying because their profits were artifically too high and told them that. They all now keep a log!

On another note, I have a ltd company client who a while ago had a vat inspection (because he took over a post office) and one of the things the inspector wanted to see were the mileage logs.

Steve 

• 
  Quote