One of the challenges that business owners face with their accounts is the division of expenditure between business and private where one sum is paid but covers both.

One such expenditure type is motor expenses.

Claiming mileage expenses

 

 

 

 

Leaving your car to one side, because this is a capital item if you are a sole trader or partnership, and will be treated as a personal item if you are the director of a limited company.

Motor expenses includes petrol or diesel, tax, insurance, breakdown cover, repairs and MOTs, car wash, road tolls (but not fines as these are not classed as a business expense).

So how do you decide on the split between business and personal?

Keep A Mileage Record

You could keep a mileage record and claim your mileage as a business expense at the current HMRC mileage rates.  Or you could keep a record of all of your mileage and then whatever percentage your business mileage represents of the whole apply this percentage to all of your motor expenses.
Please note: Directors of limited companies should always keep a mileage record because they cannot claim motor expenses for their personal vehicle.  Motor expenses can only be claimed if the vehicle belongs to the company.

Either way you need to keep a record of your mileage which can be quite cumbersome and time consuming if you are using a manual recording system.

However, I like anything virtual, and I had my interest piqued last Friday when I was listening to the Simon Mayo show on Radio 2.

Every Friday evening they feature an invention new to the market and last week they featured Peak Miles.  This company provides, amongst it’s options, a dongle that fits into the cigarette lighter of your vehicle and tracks your mileage by use of GPS.  You then insert it into your computer, via a usb socket, which connects you to the peakmiles portal, from where you can identify your business mileage and download the claim form to your computer – nice.

This got me wondering whether there is something similar on the apps market.  There are various ones on offer.
A quick search revealed milebug, iclaimit, track my mileage and xpense tracker.

Personally, I don’t have a lot of travel expenses but if you do and find one of these solutions useful, please do let me know.

If you prefer a manual system you can download my manual expenses claims forms here.

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