If you travel for your business using your own vehicle you can claim the mileage as a company expense.
It's generally acceptable to claim 45p per mile for the first 10K miles in one tax year, after this the rate claimed should be 25p per mile.
This rate should cover the cost of fuel and any wear and tear on the vehicle. You should not claim the actual fuel costs (i.e. when you fill the car up) or service, MOT costs unless you are using a hire car.
How do I record the expense?
Mileage claims can be recorded in the same way as all other expenses.
- From the Main Menu select "New Expense".
- Select your name and provide the date of travel.
- In the Item field you should provide enough information to explain where, why the claim is made. For example "Meeting in Woking with ABC. Return BS1 to GU21 3RG. 200M @45p".
- Add the amount (in this case 200 X 0.45 = £90)
- Select "No VAT".
- Select "495 - Travel - Personal Mileage" as the code
- Save the expense and authorise as normal.
Click the screen shot below for an example:
