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Work related travel expenses for self employed worker

How do you record an invoice from self employed person that included fuel expenses (Receipts provided) for example wks hours work £650 and fuel receipts for £60 Total invoice £710. Not VAT registered.
Can the receipts be entered under Fuel Costs (Motor) and the vat claimed? How would you enter the purchase invoice as it seems then the fuel is claimed twice as an expense which cant be right?
Thank you

In regards to how it’s invoiced above. The total £710 is put under subcontractor costs, for you, and the self employed person, should claim the fuel as motor expenses, keeping the original receipt.


For the fuel, the question is, if it’s invoiced, then he has paid for it, if not then you have paid for it and whether they are buying fuel for their own vehicle or your vehicle which you let them use.

If the second, then you would run the receipt as motor expense, and reclaim vat, if registered, however, they wouldn’t invoice you for this, but you would reimburse them, from petty cash, for example. So the invoice would be £650, but you would give them £710


Thank you thats really helpful.

The person is now on the payroll so how do we go about refunding for fuel costs weekly if he gives us the receipt. Does it go through payroll as tax free payment?
Thank you

If they are now on payroll, and using their own vehicle, then they should be on mileage allowance, which is 45p per mile up to 10,000 business miles driven, then 25p for each mile thereafter.

You can pay them more then this, but over the approved amount, is subject to tax.

This is approved mileage, so for example, home to normal place of work, or yard, does not count. But home to various sites does.

You would only pay them back for fuel purchased, if they were using their own money, to buy fuel for your company van, or car, which you would pay back as an expense on payroll.

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