Emailing Milage as Self Employed

Article by Rebecca Mason 02.02.15

Option 1.

You buy your petrol from your personal account, not your business account (this is because not all your mileage will be for business). You then record the mileage you travel for business purposes and charge this to the company at 45p per mile. You would do this for each month.

You could record it in a table similar to this:

IMG_1564-0.PNG

Option 2.

Your petrol has to be recorded as a capital introduced and not a direct business cost. This is because not all your mileage will be for business. This means you have to pay for the petrol from your personal account, not your business account.

At the beginning of the month record the total mileage from your odometer, plus, the mileage at the end of the month. Work out the total miles you have travelled for the month. During the month, record the mileage of each journey you make for business purposes.

At the end of the month you then credit your business account (as capital introduced) the amount you spent on petrol for business purposes expressed as a percentage of the total miles travelled.

For example, if you bought £80 of petrol, travelled 100 miles in total during the month, of which 60 where for business. What would be recorded as capital introduced would be 60% of the value of the petrol, £48.

You could record it in a table similar to this:

IMG_1565.PNG

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