How to allocate mileage expenses

July 31, 2022 3:47 am


Journeys that are undertaken by a business for the purpose of the work they do can be subject to mileage expense claims. It is important to check with a Bookkeeping Chippenham company like to ensure that you are claiming and recording these in the right way. This can help you in any instances where you may get a tax inspection and need to clearly identify why you are claiming certain expenses.

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Mileage can be claimed at 45p per mile for the first 10,000 miles that are travelled and then 25p per mile for every mile after that. It is important that you keep track of the business journeys that are undertaken and the reason for these meetings. You can track all of this in the variety of different accounting software that is available.

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If your company has business vehicles, you can claim mileage depending on whether you claim for fuel. You can only claim one of these. There will be benefits and disadvantages to each one, and it is often best to speak to your accountant to find out which one is best for your business.

Many of the accounting software packages allow you to give your employees access to upload their expenses directly into the system. This can include mileage if you are claiming back the miles that your staff undertake for business purposes.