How to calculate travel miles

[AtW]

For the purposes of claiming authorised mileage rates for usage of private car?

Is it okay if I take milage from the AA route calculator from point A to point B?

And by the way, how exactly the process of claim works with an Ltd that does not use accoutant -- do you fill in a form that contains main details, then transfer calculated amount from company bank account to your personal bank account and thats it?

[malvolio]

Mileage

What I do (and have done for 10 years) is establish a sensible distance from home to wherever work is that week, then use that figure as standard - even if you have a quick diversion to the pub every thrid night. Usually I measure it on the car's trip wotsit the first time, but any repeatable method should be OK (provided you aren't going Bristol to Exeter via Holyhead or something!)

And then keep track of each week's mileage in Excel, at 40p per mile or whatever and pay it over each month - I generally just add it to my monthly net pay. As long as it's auditable, there won't be a problem.

[fiddleabout]

Re: Mileage

See the IR website for details of allowable "profit free" mileage rates - it drops to 25p after 4,000 miles iirc - my accountant does all that 5hit so I don't know for sure.

Expenses may be booked and transferred from the company account to your personal account.

You really should be worrying more about company income than ways to extract expenses though I would have thought.

P.S. Trips down to the pub or massage parlour etc. are not normally an allowable business expense. If you decide to buy (say) and ink cartridge from PC World that journey is (and should be considered when deciding if PC World is competetive). Sometimes of course you may go there to evaluate some products and not actually buy anything.

[AtW]

Re: Mileage

See the IR website for details of allowable "profit free" mileage rates - it drops to 25p after 4,000 miles iirc

Its 10k miles actually.... I am going to use the AA's distance calculation between points A and B - its on the safe side I actually drove a few more miles.

I only intend to count drive from home to clients site and back (exclude driving to hotel, should be close enough).

You really should be worrying more about company income than ways to extract expenses though I would have thought.

All in due course - I need to understand expenses thung

[Robot]

Re: Mileage

"All in due course - I need to understand expenses thung"

ATW

Don't forget staff entertaining, this is £150 per 'employee' or 'officer' of the company. Might be better than paying the company secretary a salary

Don't forget to sell all your computer equipment to the company, this would be tax free dosh!

Just thoughts, speak to your accountant for professional advice.

[OrangeHopper]

Re: Mileage

You can use averages (according to NI chap who audited me many years back) but I keep a log book in which I record daily mileage.

This is simply because I can take many different routes to and from my current client which vary between 115 and 140 miles round trip. Ironically the 140 mile trip can be the fastest but is more prone to long holdups.

[fiddleabout]

Re: Mileage

I doubt it's that far to the local supermarket - cost of driving 140miles would wipe out half his daily pay there.

[OrangeHopper]

Re: Mileage

Stacking the cereal boxes is very important work!