Road tax

[Tigris]

Hi,

I'm currently using a car for both business and personal (keeping a record of miles in a spreadsheet).

I'm not sure how to record the road tax I have just paid for the year in quickbooks online? I'm operating as a sole trader.

For fuel I've read record that as "travel expenses" but not sure for the road tax?

Thanks

 

[STDFR33]

Have you adopted actual cost or the mileage rate?

 

[Tigris]

Have you adopted actual cost or the mileage rate?

Will probably go for the mileage rate.

 

[NHAccountant]

Hi

You have two choices:

1. you claim a flat rate per mile (45p for the first 10,000 miles in a year) which is intended to cover fuel, other costs (e.g. tax and insurance) and wear and tear.
2. record business and personal mileage in the year, add all costs for the year together, apportion according to mileage.

Either way, make sure your mileage records are detailed enough to demonstrate that business mileage is clearly that - e.g. the "from" and "to" location/postcode, who and why you visited, the miles travelled, record the "going" and "return" as separate entries. The better the detail, the less HMRC can quibble!

 

[STDFR33]

Will probably go for the mileage rate.

Then any other costs incurred will go through as drawings.

 

[Bob Morgan]

Here we go! The '45 Pence Maximum Brigade' will be along in a moment!

 

[Tigris]

Hi

You have two choices:

1. you claim a flat rate per mile (45p for the first 10,000 miles in a year) which is intended to cover fuel, other costs (e.g. tax and insurance) and wear and tear.
2. record business and personal mileage in the year, add all costs for the year together, apportion according to mileage.

Either way, make sure your mileage records are detailed enough to demonstrate that business mileage is clearly that - e.g. the "from" and "to" location/postcode, who and why you visited, the miles travelled, record the "going" and "return" as separate entries. The better the detail, the less HMRC can quibble!

I should probably look into which option is best for me really then? I did read somewhere that with the mileage you can record 3-4 months before year end and it works on average % of personal use vs business use as well?

 

[Financial-Modeller]

Given the effects of inflation on costs and that the 45p allowance hasn't changed for years, I assume that more drivers will switch from the flat rate option.

 

[AlanJ1]

Hi

You have two choices:

1. you claim a flat rate per mile (45p for the first 10,000 miles in a year) which is intended to cover fuel, other costs (e.g. tax and insurance) and wear and tear.
2. record business and personal mileage in the year, add all costs for the year together, apportion according to mileage.

Either way, make sure your mileage records are detailed enough to demonstrate that business mileage is clearly that - e.g. the "from" and "to" location/postcode, who and why you visited, the miles travelled, record the "going" and "return" as separate entries. The better the detail, the less HMRC can quibble!

This is solid advice. I echo the bottom paragraph, it's something if you ever get inspected that gets picked up on quickly if done wrong or not at all.

 

[Tigris]

To be honest i'm wondering if its even worth recording miles at all/claming expenses.

I probably do less than 2,000 miles a year business

 

[Newchodge]

To be honest i'm wondering if its even worth recording miles at all/claming expenses.

I probably do less than 2,000 miles a year business

And how much personal mileage?

 

[Tigris]

And how much personal mileage?

Around about the same. I have another car which is a little worse on fuel but more fun to drive so I use that at weekends/more personal. (Completely separate from business).

I have a part time job as well as my business so I use the business car for that as its cheaper on fuel but goes down as personal miles on the mileage sheet.

 

[Newchodge]

Around about the same. I have another car which is a little worse on fuel but more fun to drive so I use that at weekends/more personal. (Completely separate from business).

I have a part time job as well as my business so I use the business car for that as its cheaper on fuel but goes down as personal miles on the mileage sheet.

So you would get aboyt £900 at 45p or half the allowable costs.