Best Way to Log Mileage

[Jeremy Gadd]

I'm using Sage Instant Accounts. I'm looking for the best way to log my mileage. In the past I put all my mileage on a sheet of paper and totalled it at the end of the year and worked out the allowance. Now that I'm using software I see that I could use the 7306 'Mileage Claims' N/C, for example, 10 miles x 0.45p per mile = £4.50, and add this for the date I incurred the expense. However, if I do this, I will not be able to reconcile this with my bank statement as it will probably just show £20 debited by the petrol station.

Can someone please advise me on the best way of logging mileage. Many thanks.

 

[StevensOnln1]

Firstly, are you a sole trader or limited company? This affects how you should treat mileage/motoring expenses.

 

[Jeremy Gadd]

Firstly, are you a sole trader or limited company? This affects how you should treat mileage/motoring expenses.

Sole trader

 

[Scalloway]

You can do it as a Journal Entry.

Dr Mileage Claims
Cr Drawings

 

[weebly_one]

you need to either use your petrol receipts and put them through your company account and allocate to the mileage nominal code - or pay for the petrol privately and claim the 45p per mile. It's an either or thing - looks like you are trying to do a combination of both.

My sole trader clients tend to pay for all their petrol through the company - but keep a separate record of personal mileage then adjust at the year end to take account of personal miles done via an adjustment at the year end.

Ltd companies pay for petrol privately but record all business mileage and pay themselves 45p per mile on a monthly or quarterly basis.

If you are VAT registered don't forget to take that into account too.

 

[MyAccountantOnline]

Sole trader

You cant claim petrol and the mileage allowance.

 

[Jeremy Gadd]

you need to either use your petrol receipts and put them through your company account and allocate to the mileage nominal code - or pay for the petrol privately and claim the 45p per mile. It's an either or thing - looks like you are trying to do a combination of both.

Thanks for your reply. Just to clarify this, I'm not trying to do a combination of both. I am paying for the petrol out of my own bank account, ie. privately, and claiming the 45p per mile. I'm just a bit lost as to how to record this in my Sage software.

 

[MyAccountantOnline]

Thanks for your reply. Just to clarify this, I'm not trying to do a combination of both. I am paying for the petrol out of my own bank account, ie. privately, and claiming the 45p per mile. I'm just a bit lost as to how to record this in my Sage software.

OK so the petrol will never appear in Sage being a private cost and paid from your private bank account. Are you going to actually pay yourself the 45ppm?

 

[Scalloway]

I was going to suugest that if you dnn't want to do a Journal Entry you should pay yourself a cheque periodically.

 

[Jeremy Gadd]

I was going to suugest that if you dnn't want to do a Journal Entry you should pay yourself a cheque periodically.

No, the Journal entry seems fine but then since you first suggested that there have been other replies to this thread that have suggested otherwise.

I'd really like to record it against a Nominal Code somehow as it then gives me some kind of analysis in the Profit and Loss report so that I can check which expenses are, well, the most expensive

 

[MyAccountantOnline]

No, the Journal entry seems fine but then since you first suggested that there have been other replies to this thread that have suggested otherwise.

I'd really like to record it against a Nominal Code somehow as it then gives me some kind of analysis in the Profit and Loss report so that I can check which expenses are, well, the most expensive

Why not just create a new account for 'mileage allowance'?

 

[MyAccountantOnline]

...pay yourself a cheque periodically.

A cheque whats one of those havent seen one for a very long time

 

[Scalloway]

The business isn't paying for the fuel so you want to bring it into the accounts. To my mind Journal Entry or cheque are the only ways to do it.

 

[Scalloway]

A cheque whats one of those havent seen one for a very long time

I'm showing my age! I believe you young people use internet banking nowadays.

 

[MyAccountantOnline]

I'm showing my age! I believe you young people use internet banking nowadays.

'Young people' ...ooh thank you, you've made a middle aged woman very happy But yes its all done online for me now.