Mileage Log - If audited what proof?

[Deleted member 120672]

Hi, I'm a self-employed freelance ironing (sole trader) and currently travel back and forth to a client to collect and deliver ironing once a week, doing the ironing from my home.

I believe that I can claim 45p per mile for the travel back and forth to this client on my self-assessment tax return. It's a regular once a week round trip and I've read how I need to log the date, reason (collection/drop-off of ironing), miles and vehicle used. My question is...if I was ever audited is this 'log' which is simply an excel spreadsheet, is it really enough to prove this travel has been done?

The car is my own car and is used for both personal and business use. I'm aware that if the vehicle belonged to a business as a capital expense you'd keep all receipts and MOT receipts etc instead and have the expenses as the actual amounts rather than using the 45p per mile rate. It just seems that a mileage log is little evidence of the expense incurred? Thanks for the advice.

 

[BustersDogs]

When I was using a personal car as my second vehicle I put the name of the client I was going to see. That would then tally with my sales spreadsheet with their payment. That info I got from this site, so my headings were:

Date From To Total Miles Client name 2nd Client 3rd Client

So if I were logging miles to see John Smith then Fred Blogs there would be a payment in my sales on the same day, or if they were a pay weekly but visit daily client, would have an entry in my work diary & on my daily work sheet. My diary just lists the dogs I need to see to that day, the daily work sheet is the timetable of when I need to visit them.

Do you keep records like that?

 

[Deleted member 120672]

Hi, Thanks for your post. Basically I invoice my client and total the weekly mileage for the round trip visiting them at the bottom, for reference. The client doesn't pay for my mileage but it's an expense I'm hoping to claim on my tax return.

 

[Scalloway]

As far as I am aware a mileage log detailing the reason for travel etc is ok. If HMRC should come to call they will examine all your records and it will be obvious how your business works.

 

[Deleted member 120672]

As far as I am aware a mileage log detailing the reason for travel etc is ok. If HMRC should come to call they will examine all your records and it will be obvious how your business works.

Thanks, it's pretty much my only major expense so I wanted to double-check. Seems HMRC are putting a lot of faith into self-employed people logging the correct mileage in a spreadsheet but guess aside from collecting and collating all receipts and invoices to do with the car, there's nothing else they can go on.

I shan't worry about keeping all my petrol receipts then if the mileage log is proof enough. Thanks for the reply

 

[MyAccountantOnline]

Thanks, it's pretty much my only major expense so I wanted to double-check. Seems HMRC are putting a lot of faith into self-employed people logging the correct mileage in a spreadsheet but guess aside from collecting and collating all receipts and invoices to do with the car, there's nothing else they can go on.

I shan't worry about keeping all my petrol receipts then if the mileage log is proof enough. Thanks for the reply

If you are subject to an HMRC Enquiry, HMRC may well look at your mileage log but this can fairly easily be cross referenced to the work you do looking at where your clients are, who is invoiced and when, etc. The annual car mileage can be supported by things like your car MOT certificate, car servicing invoices etc.

 

[Philip Hoyle]

The tax inspector may also check your journey against Google Maps or the AA route planner to check that the mileage claimed is right according to the route between your place and your clients, so if you don't take the shortest route, i.e. due to congestion or a diversion or whatever, then sensible to make a note on your mileage log to explain the longer distance.