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 https://chippendaleandclark.com/services/bookkeeping 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.
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.
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.
Fuel cards and simpler mileage records
Fuel is often the biggest part of a mileage claim, and the traditional approach of staff paying at the pump and claiming the money back leaves employees out of pocket and creates extra admin for the business. A fuel card removes that step. It works much like a debit or credit card, but only for fuel, and the bill goes straight to the business.
Fuel cards can also help with record keeping. In some cases drivers can give their mileage to the cashier when they pay, so it is logged with the business at the same time as the purchase. The invoices and receipts can be entered quickly into the bookkeeping system and are HMRC compliant.
Because every fill-up is recorded, the business can keep a closer eye on how much fuel each driver uses and how often vehicles need filling, which makes it easier to check that mileage figures add up.