Classifying Petrol receipts in Account software.

What do I do with petrol receipts purchased with company card.

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As a company director I use Mile IQ to clearly log the business vs personal miles I am doing with my personal car. I purchase my fuel with my business bank account card. 

I prefer to charge the 0.45p per mile as expenses as allowed by HMRC. What do I then do with the receipts from the petrol stations? Are these accounted for in QuickBooks as a purchase but not as an expense? If so under what category? Please also explain the PD11 to log company benefit. I want the legal solution to this problem. Not looking to evade tax. 

My business is young and I have gone the route of a £1000 a month with dividends until viable. 

Please note I saw another question here on petrol but it was asking something slightly different. 

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By Matrix
29th Mar 2019 17:40

If you own the car then it is very simple, you claim the 45p a mile from the company. Going forward pay for the petrol personally.

If the company has already paid for the petrol then book this to your Director loan account, then book the mileage against this.

You would only need the VAT receipt if the company is claiming the VAT element of the mileage.

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By Tim Vane
29th Mar 2019 17:43

These are all questions you should put to the accountant who helped you setup your QuickBooks chart. I am slightly surprised they haven’t covered this with you already but I am sure a quick phone call will line you up for some training. I assume the divs are on top of your salary - make sure you get the accountant to push your salary and pension caps to minimise tax and also check with them about dividends because you’ll want to ensure they are all legal. Sounds like your accountant may not be as proactive as you might need so give them a grilling and find out why they aren’t on top of these things or it could cost you a lot. Given the date I would have expected them to have been checking your situation recently. You might need to think about switching accountants if you are not happy with your current appointment. You certainly deserve decent service if you are working hard to run your company.

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