Continuing the discussion from Mileage Claims Expenses:
I’m just getting to grips with this too. As a Sole Trader, when I enter a mileage allowance do I enter the amount in the ‘Paid From’ dropdown box as Proprietor Drawings Account and would the Method be Cash???
Sorry I closed the other thread as we already have a conversation started here.
As a Sole Trader business there is no legal separation between you and your business, therefore your sales less your business expenses becomes your trading profit and your trading profit is counted as your personal income.
The ‘Proprietor Drawings Account’ (1202) is a Balance Sheet account used to track both drawings and capital introduced, it does not have an effect on the P&L and therefore your trading profits. If you do not have a separate business account or you have not reimbursed yourself for the expense, pay the invoice from the ‘Proprietor Drawings Account’.
I have a separate business account.
I’m simply looking to see which account in QF the transaction goes in. In the past before I used QF I simply logged mileage, multiplied the total by 0.45 for the 1st 10,000 miles and added the amount in £s as my yearly mileage allowance, then went to my Self Assessment and added it in the appropriate place. Below is what I see when I enter a purchase:
Simply select the ‘Proprietor Drawings Account’ and payment method if it was not actually reimbursed to you from the business account:
Thanks very much for clarifying that for me.
