Accounting for mileage

[~serenity~]

what is the correct way to account for mileage? Should I add up the mileage each business journey I have made (I use my own vehicle but it's insured for business use) or keep receipts for fuel?

 

[elaine@cheapaccounting]

Add up milegae and claim 45p/ mile for first 10,000 miles then 25p / mile

 

[Anna Chandley]

If you are VAT registered you should also keep the receipts so that you can claim back the VAT element of the mileage payment. If you are not VAT registered then no need to keep them.

Anna

 

[MyAccountantOnline]

what is the correct way to account for mileage? Should I add up the mileage each business journey I have made (I use my own vehicle but it's insured for business use) or keep receipts for fuel?

Are you asking as a company director driving your own car for business use or a sole trader?

 

[~serenity~]

Are you asking as a company director driving your own car for business use or a sole trader?

Sole trader.

Thanks for your replies everyone, this clears that up for me.

 

[MyAccountantOnline]

Sole trader.

Thanks for your replies everyone, this clears that up for me.

Bear in mind you do have the option of claiming your actual car expenses ie fuel, repairs, servicing, insurance and capital allowances.

It's definately worth seeing which option gives you the biggest tax saving.