Showing Mileage on books

digi_d

I use my car for biz and pleasure keeping a log of each trip for biz mileage. I keep receipts for all petrol spent. At the end of the month I total all biz miles and offset the HRMC rate. So if say I did 400 biz miles in Feb and it comes to £160 (400 x .40p) yet petrol spent that month was only £200 how do I show it in my books? The £200 has clearly gone from my account to pay for all the petrol private and biz.?
Am I missing something here at confused dot com? If I show £160 and the £200 is it right to show a total of £360?

nickj_2

you are not just claiming for the petrol , the 40p allows for running costs , servicing , tax insurance etc all come out of that 40p

digi_d

nickj wrote: »

you are not just claiming for the petrol , the 40p allows for running costs , servicing , tax insurance etc all come out of that 40p

I know but which figure do I show the 160 or the £200 or both?

Do I claim the 160 and just keep the receipts to prove I bought it along with the mileage records?

My statement will show a £200 figure for the paid for petrol. Wont they want to know what is what at HRMC?

nickj_2

i would keep receipts and a log of your mileage , show the £200

dylanj_2

Its actually 45p per business mile. It changed in the 2011/2012 tax year and is at that rate until the foreseeable future.

If you are using the ppm method then you don't need to keep any receipts for your fuel, and don't worry too much about your bank statements as the 45p you get for every mile includes the running of your car. If you could only travel a mile on every 45p of fuel, you need something more economic

redpete

nickj wrote: »

i would keep receipts and a log of your mileage , show the £200

I disagree, the amount that can be claimed against tax for mileage is 45p per mile, the OP did 400 miles on business which would allow them to claim £180; the fact that they spent £200 on petrol for business and private miles in the period is irrelevant. You should keep a log of the business journeys for evidence should HMRC ask for it.

dylanj wrote: »

Its actually 45p per business mile. It changed in the 2011/2012 tax year and is at that rate until the foreseeable future.

If you are using the ppm method then you don't need to keep any receipts for your fuel, and don't worry too much about your bank statements as the 45p you get for every mile includes the running of your car. If you could only travel a mile on every 45p of fuel, you need something more economic

If you are VAT registered you might need to keep receipts - with your example you would need to keep sufficient receipts to cover the fuel element of the 45p a mile (I can't remember what the standard allowance is, it's somewhere on HMRC website). My situation is different as I am employed but if I use my own car for business I claim the 45p per mile and have to provide receipts to allow the company to claim back the VAT on the fuel element.

WHA

The actual payments for fuel should be paid out of your personal account, not business account, together with all other motoring costs.

Then you can draw the mileage (at 45ppm) from the business account at regular intervals supported by your mileage log, to pay into your personal account.

If you have only one bank account for both business and personal, then the motoring costs go down as drawings in your book-keeping/accounts.

Slinky

For anybody else reading this, it's 45p for the first 10,000 miles per tax year, then 25p per mile after that.

Lomast

WHA wrote: »

The actual payments for fuel should be paid out of your personal account, not business account, together with all other motoring costs.

Then you can draw the mileage (at 45ppm) from the business account at regular intervals supported by your mileage log, to pay into your personal account.

If you have only one bank account for both business and personal, then the motoring costs go down as drawings in your book-keeping/accounts.

+1 This,

We got told off by the HMRC inspector for paying the fuel on a company credit card and offsetting it against the mileage.

Mistral001

As others have said you just need to keep a log of business journeys made (date, customer, destination and mileage etc.) and claim 45p per mile. The log is the evidence that you need. I should imagine it would be fairly easy to check that you actually made those jouneys, if HMRC suspected that they were not being made, so their accuracy is important.

bris

The running costs are irrelevant if you are claiming the 45p allowance, you can't claim the allowance and put the fuel costs through the books.