Sole trader, approved mileage

Accounting
1

I am a fairly new user and have limited accounting knowledge, so forgive me! I know there is a guide to creating a supplier and invoice fr handling business mileage, but I feel there’s something really useful missing (unless I’m not seeing it).

HMRC approved mileage rate is at two levels, 45p for the first 10,000 annual miles, 25p thereafter. This means you need to keep a running track of the total of miles as well as the amount. The help suggests simply recording the totals with the reasons for the journey in the description, but that requires manual calculation to also input running totals.

Another thing to do with the mileage question is where one is part reimbursed by an employer. At present, on a freelance basis, I claim mileage from clients but at varying rates (25-45p). To simplify things for me, I treat the entire invoice as taxable, then claim my 45p/mile allowable expense on the mileage at self assessment.

I’m now moving into a part time employed where I’m officially based at home and travel to wherever they require me to work each day. Every day is different, but their jobs are based around one large metropolitan region about 40 miles from me and its outlying villages. This is in addition to working freelance the rest of the week when I could be travelling absolutely anywhere. As I live 40 miles from the main region of work, the employer will cap the mileage at £19 per return journey. I’m assuming that will be reimbursed non-taxed in my pay. I’m therefore going to have to claim the additional actual mileage at self assessment time, so need to record that, but still have regard to the 10k cutoff. I’m not at all clear yet whether the miles they do pay me for as an employee count towards my personal 10k, or whether it’s only the extra that I have to count.

Why can’t tax be simpler!

So what I’m suggesting is some kind of supplier invoice that has customisable calculations built ie rates and totals for columns, also the possibility to have a brought forward set of totals for when one might do mileage records monthly.

Is there something already? If not I see myself using a spreadsheet separately to keep this record - shame for it to be outside of QuickFile as I’m loving having everything in one place, accessible on any device anywhere!!

2

If your also employed and the employer isnpaying you mileage (or anything else for that matter), it shouldn’t make an appearance on QF - being employed and self employed are different and can’t be mixed and accounted for in one go.

In terms of claiming mileage on a self employed basis, I’m assuming you’ve seen this guide: http://help.quickfile.co.uk/main/1/business_mileage.htm

I don’t actually deal with mileage, mainly because I’m not fortunate enough to do much travelling on business time, but it may be worth seeking the advice of an accountant.

3

If by “employer” you mean that you have a contract of employment with PAYE deducted then as Parker1090 says nothing should be going through Quickfile.

If you are working on contract, which normally means registering a limited company, then things are different. Presumably expenses will go through the company account and should appear in Quickfile.

If you are doing a mix of employment with PAYE and freelance work then I would suggest consulting HMRC or a professional adviser.

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