Claiming business miles

[Dobbollah]

As a director of a small limited company im aware I'm entitled to claim business miles as an expense.

Is it as simple as documenting the mileage and then making that payment from the business account to my personal account.

Sorry if it's a daft question...

 

[Scalloway]

You should keep a log of all business journeys and use that to calculate your mileage claim. The business then pays you the sum due. Keep a copy of the log as a evidence for the payment in the company accounts files.

 

[WaveJumper]

https://www.gov.uk/simpler-income-tax-simplified-expenses/vehicles-
Full details here and it may be worth using an App to keep track of your journeys

 

[MyAccountantOnline]

https://www.gov.uk/simpler-income-tax-simplified-expenses/vehicles-
Full details here and it may be worth using an App to keep track of your journeys

That's a link for someone who is self employed the OP is a company director although the rates are the same. Here's the correct link

 

[MyAccountantOnline]

As a director of a small limited company im aware I'm entitled to claim business miles as an expense.

Is it as simple as documenting the mileage and then making that payment from the business account to my personal account.

Sorry if it's a daft question...

To add to the above dont forget the VAT if your company is VAT registered.

 

[Dobbollah]

Many thanks for all the helpful answers.

Can this be backdated from previous tax tears...

 

[Spur Support Services]

To add to the above dont forget the VAT if your company is VAT registered.

Addendum to the above... you can only claim the VAT on the fuel rate, not the whole mileage rate.

The mileage rates for cars are 45p per mile, although if you have a motorbike they only give you 24p per mile, which really indicates their total lack of understanding of the cost of running and clothing yourself appropriately for biking.... see here
https://www.gov.uk/government/publi.../travel-mileage-and-fuel-rates-and-allowances

The various fuel rates that should be used for determining the VAT inclusive part of the mileage rate are published every quarter are around about 10p per mile, dependent on fuel and engine size and found at https://www.gov.uk/guidance/advisory-fuel-rates

As far as simple ways of recording.. it will depend on your software.
Some software has built in mileage claim functionality.
If the accounting software doesn't have a special mileage claim function, then set up a "product/service" item for mileage rates so that you can just raise a supplier bill for the quantity of miles claimed. The weakness in this second method, is that you will have to take care to monitor the miles, so that you remember to drop the rate after the 10k threshold. Again a report could be run, for this by looking at purchase volume of the "product/service" item.

 

[MyAccountantOnline]

Addendum to the above... you can only claim the VAT on the fuel rate, not the whole mileage rate.

......

Thanks Rebecca - it would have been better if I'd made that clear.