Reply to: Business Mileage Rate - 25p/40p

[SimonMac]

I always planned to do that, but can't be arsed learning how to use Excel. It's always ended up with a bit of a clumsy manual calcualation when I cross over the 10,000 miles.

PM me your email address and I will send you what I have, also you can give me a bit of a sanity check that the calculations are right

[VectraMan]

Was bored so whet the whole hog and probably a bit over board with the spreadsheet, it automatically calculates the rate based on the miles already entered and presents them in nice graphs lol!

I always planned to do that, but can't be arsed learning how to use Excel. It's always ended up with a bit of a clumsy manual calcualation when I cross over the 10,000 miles.

[SimonMac]

I have a spreadsheet with an entry for every trip, start postcode, end postcode, car reg, client name, mileage, whether it was one way or return, and expense claimed, and then the totals for the month at the bottom. Of course it's a bit repetitive, and is probably pointless, but if anybody ever did come and look I can show them what I claimed for in painful detail.

Was bored so whet the whole hog and probably a bit over board with the spreadsheet, it automatically calculates the rate based on the miles already entered and presents them in nice graphs lol!

[Sockpuppet]

I have a spreadsheet with an entry for every trip, start postcode, end postcode, car reg, client name, mileage, whether it was one way or return, and expense claimed, and then the totals for the month at the bottom. Of course it's a bit repetitive, and is probably pointless, but if anybody ever did come and look I can show them what I claimed for in painful detail.

Same as you except I do mine every 3months, keep records of what I do weekly just "enter them" every 3 months so there is less paperwork.

[VectraMan]

2) Is there any requirements for what needs to be recoreded on your own company mileage form, I assume as long as it has the date, the start and end destinations and the miles covered everything else is irrelevent?

I have a spreadsheet with an entry for every trip, start postcode, end postcode, car reg, client name, mileage, whether it was one way or return, and expense claimed, and then the totals for the month at the bottom. Of course it's a bit repetitive, and is probably pointless, but if anybody ever did come and look I can show them what I claimed for in painful detail.

[Nixon Williams]

Didn't know about this bit, I assume this would only be able to for those not on falt rate when it comes to VAT?

Fuel receipts are only needed if you are NOT on the Flat Rate Scheme, if you are on the Flat Rate Scheme, fuel receipts are not required.

Alan

[Nixon Williams]

1) The 10,000 limit would run my personal Tax year rather than the companies accounting year?

The "clock" resets at the start of each new tax year, ie 6th April.

Alan

[TykeMerc]

Rather than start a new thread with a few questions I hope the OP doesn't mind me hyjacking to clarifiy a few things.

1) The 10,000 limit would run my personal Tax year rather than the companies accounting year?

I base mine on the financial year, never specifically asked the accountant if that's correct, but he's good at spotting me doing stupid stuff so it's probably right.

2) Is there any requirements for what needs to be recoreded on your own company mileage form, I assume as long as it has the date, the start and end destinations and the miles covered everything else is irrelevent?

That's pretty much what I record, I add a note like "Site Visit" or "Client meeting"

3) How do I record that I have paid myself the money, in the past its always been on my wage slip, but I am not planning on taking a salary for the first few months until I am up and running.

TIA

I pass an expenses spreadsheet to the accountants, they check it for daft errors then put it into the company accounts as refunded expenses. I draw the cash from the business.

[SimonMac]

I'm not on flat rate VAT so don't know

As the idea is that you don't have to claim back the VAT on costs, instead just take it as a % of turnover I assume this is not needed for those on flat rate

[Sockpuppet]

Didn't know about this bit, I assume this would only be able to for those not on falt rate when it comes to VAT?

I'm not on flat rate VAT so don't know

[SimonMac]

No worries. Its b.

So 10000 x £0.40 to MF = £4000. That is sorted and correct.

You have a 2000cc Petrol car so fuel element is: 15p per mile (changed every 6 months, next change march 1st).

So 10000 x £0.15 = £1500

VAT on £1500 is £300.

You only need to keep £1500 worth of petrol receipts, not receipts for all the fuel you buy.

As for recording it if you use sage or another accounting program I'd do 2 entries.

£1500 Fuel Element Of Mileage @ 20% VAT
£2500 Non Fuel Element of Mileage @ 0% VAT

otherwise just do £4000 with vat of £300 = 7.5% VAT. You could do that if you used an accounting program but it'll probably winge if the vat is not 0%, 5% or 20%. Also good to show what fuel element of miles claimed is.

Sockpuppet

Didn't know about this bit, I assume this would only be able to for those not on falt rate when it comes to VAT?

[SimonMac]

Rather than start a new thread with a few questions I hope the OP doesn't mind me hyjacking to clarifiy a few things.

1) The 10,000 limit would run my personal Tax year rather than the companies accounting year?

2) Is there any requirements for what needs to be recoreded on your own company mileage form, I assume as long as it has the date, the start and end destinations and the miles covered everything else is irrelevent?

3) How do I record that I have paid myself the money, in the past its always been on my wage slip, but I am not planning on taking a salary for the first few months until I am up and running.

TIA

[MarillionFan]

According to HMRC:

If you work for different employers

If you have two or more employers which are independent of each other, you're due the higher mileage rate for business mileage in each job.

HM Revenue & Customs: Tax relief for business mileage or fuel

Last question.

Does this go on your self assessment as well as your LTD accounts or only against the LTD as an expense.

[escapeUK]

The 25p level is a con. If you have a diesel that does 50mpg that's about 10 miles per litre. Those 10 miles would generate £2.50. Take away the £1.30 you pay for the fuel and you get £1.20 to pay for all the other motoring costs!

If you own 2 cars for you get 2 lots of 10k allowences? I suspect not!!

Someone else who has not understood that all you get *extra* is the tax you would have paid, if you had paid this as dividend rather than expense. Sigh.

[BoredBloke]

The 25p level is a con. If you have a diesel that does 50mpg that's about 10 miles per litre. Those 10 miles would generate £2.50. Take away the £1.30 you pay for the fuel and you get £1.20 to pay for all the other motoring costs!

If you own 2 cars for you get 2 lots of 10k allowences? I suspect not!!