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How to Present Mileage Costs in Company Accounts

How to Present Mileage Costs in Company Accounts

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Hi All

a client has done 5,000 business miles in his financial year.  he has £750 of receipts.

as he is sole director, and using his own car for business use, i am going to consider the mileage allowance and so will look to claim 5000*0.45=£2,250

My question is with reagrds to teh accounts that will get submitted to CH.  Should I input £750 actually spent on fuel in the P&L and make the adjustment in teh Corp Tax Return, or should i input £2,250

Furthermore, if he claims £2,250,will this give rise to a P11D needing to be submitted?

Thanks for your help

Replies (7)

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By Howard Marks
01st Aug 2016 07:18

I'm not usually one to say this but please pass your client onto somebody who's capable of completing the job. The questions you've posted are so basic you shouldn't be allowed near a set of accounts let alone presumably be paid for them.

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Replying to Howard Marks:
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By Portia Nina Levin
01st Aug 2016 18:29

.

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By johngroganjga
01st Aug 2016 10:55

In order for a company to obtain corporation tax relief for expenditure it (the company) must have incurred it. Your idea that you can skip round that obvious requirement by making an adjustment in the CT computations to reduce the taxable profit for expenditure that the company has not incurred is completely misconceived.

So in order for the company to claim corporation tax relief on £2,250 the company must incur that expenditure. How is it going to do that?

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By mrme89
01st Aug 2016 11:07

You are confusing different sets of rules.

You need to use the mileage rate and ignore the fuel receipts.

Journal:
Dr Mileage Expense
Cr DLA

No adjustment will need to be made in the tax computation.

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By Discountants
01st Aug 2016 13:47

To further add to mrme89's journal if some of the fuel has been paid via the business bank account (which means you can't ignore it) you should also:
Dr DLA
Cr Motor expenses

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By tracey2412
01st Aug 2016 16:00

As he has the fuel receipts & assuming is VAT registered, might he also be able to claim 2.17p per mile VAT against the mileage cost? cr mileage dr VAT? just chucking this into the pot on this thread as some of my client's accountants tell me I can do this (I'm the book-keeper) but not all mention it? many thanks

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By Portia Nina Levin
01st Aug 2016 16:13

I agree with Howard.

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