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Mileage Log - Advice Needed

Do I need to itemise the mileage for each of the journeys I make

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Hi,

I am in the process of setting up a garden maintenance business and was after some advice on keeping a mileage log.

I will be using a van for about 90% business and 10% personal use. I appreciate that I will have to aportion the vehicle expense in this ratio.

I will be visiting numerous customers throughout the day and was wondering how detailed my business log will need to be to keep HMRC happy.

Do I need to itemise the mileage for each of the journeys I make to every customers house, or can I just keep a total of all the business mileage I make each day.

Basic Example :

Home – Customer A = 3.5 miles

Customer A – Customer B = 2.1 miles

Customer B – Customer C = 1.4 miles

Customer C – Home = 3.2 miles

In the above example is it OK to put it into the mileage log as total business mileage is 10.2 miles total, or do I have to insert each journey with full details separately.

It would be so much easier if the total method was acceptable as I may be visiting about 8 customers each day.

Any advice would be greatly appreciated.

Replies

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avatar
11th Feb 2019 11:41

If you don't have an accountant, try the HMRC helpline.

Thanks (1)
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11th Feb 2019 11:48

you need to identify each journey - you can get something called an 'app' these days which does that for you.

Thanks (1)
to memyself-eye
12th Feb 2019 08:15

It doesn't though, does it ?

Thanks (1)
11th Feb 2019 12:30

Often, for self employed people using actual costs and claiming capital allowances on the van itself will be more tax efficient than mileage.
Talk to a local accountant!

Thanks (2)
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to accountantccole
11th Feb 2019 12:41

Either way, they would still need to keep a log, wouldn't they?

Thanks (2)
to accountantccole
12th Feb 2019 08:16

accountantccole wrote:

Often, for self employed people using actual costs and claiming capital allowances on the van itself will be more tax efficient than mileage.
Talk to a local accountant!

In my experience, that depends very heavily on the cost of the van.

Thanks (1)
avatar
11th Feb 2019 12:45

This sounds like a case of 'I am lazy and can't be bothered'.
Bother getting an app to help you and get into a good routine from the outset.

If you don't have respect for record keeping you will be making life more difficult for yourself.

Thanks (2)
12th Feb 2019 06:20

If it’s a van I’d tend to go with claiming capital allowances on the vehicle and then all the individual expenses such as fuel, insurance, MOT, servicing repairs, road fund license.

Then a disallowed add back of 10% of the motor expenses could be applied

Thanks (1)
By DJKL
to John Charman
12th Feb 2019 09:48

Which ought to be supported by some evidence (like a mileage log) that 10% is appropriate.

I must admit that I find getting sole traders and partners to actually keep mileage logs is not the easiest task in the world, I tend to initially concentrate my efforts on getting them to keep accounting records and do a stocktake once a year.

Thanks (1)
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12th Feb 2019 07:00

If you are unrepresented (don't have an accountant), all you need to do is imagine the conversation when HMRC knocks on your door. If you would be able to ask them in, offer them a cup of tea and produce your detailed mileage log there and then, don't you think they'll move onto the next guy much more quickly than if your response is "90%? Oh yes officer that's right - I worked it all out before I started my business"?

Thanks (1)
to Tax Dragon
12th Feb 2019 08:19

I'm not really expecting HMRC to be knocking on anyone's door, asking for mileage logs any time soon.

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to lionofludesch
12th Feb 2019 09:31

And there was me thinking you were one of the more imaginative contributors that might actually understand a parable.

Thanks (1)
By DJKL
to Tax Dragon
12th Feb 2019 09:51

Just serve them Caramel Logs instead; Tunnocks of course.

http://kevssnackreviews.blogspot.com/2014/03/tunnocks-caramel-log-wafer-...

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to lionofludesch
12th Feb 2019 10:44

True.

When HMRC visited a client of mine they didn't bother knocking.

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12th Feb 2019 09:31

Thank you all for the advice. I think the consensus of opinion is to log every individual journey as oppose to totalling the overall business mileage each day.

Obviously the 90% figure I gave as a rough estimate will only be determined as an exact figure at the end of the tax year.

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