I'm finding it impossible to find out how to actually submit mileage claims as the director of my limited company. There's no specific how to guidance on the exact way to do so. It's not a self assessment form is it?
If you are claiming it from your company it’s normally a case of working out the £ payable and repaying yourself. You then enter it in your records as an expense and keep a log of how you came to that figure. You get tax relief in the company as it’s reducing your profits.
Very useful video. I’m a director of my LTD company, I’m looking to get a 48K PHEV business lease. BIK is 8%. Currently I have my personal diesel vehicle on lease and claim 45p a mile. This vehicle is due to go back soon. If I get a company car, I know I have BIK & Class 1A NI. How do I claim mileage? It’s not 45p a mile I assume? I’m not VAT registered. Essentially what running costs can I claim? Wanted to do some figures myself and see if I’m better off. Would appreciate some advice.
If you go full company vehicle with BIK company pays the running costs. You wouldn’t normally do mileage, certainly not the full 45p rate. You’d either fuel it through company (BiK issues) or you’d pay yourself the ‘AAmP rates’ (google this for rates) for the mileage.
@@HeelanAssociates spot on, that makes perfect sense. I’ll probably claim the miles, company paying for fuel and then paying tax on it sounds like extra work
Thank you very much for all the helpful information you are providing!! I have the following scenario: director/owner of limited company paid for petrol with company card on personal car for business trip. If I allocate the payment to my directors loan account (meaning I owe money to my limited company), how do I "counter it with mileage rates"? Many thanks in advance for your help!! Best wishes, Hendrik
Hi Hendrik, if it was a business journey you’d make an entry in your records of the mileage claim. 25p for first 10,000. 10p thereafter. Say the claim was £65 your records would show a cost of £65 in mileage and would be £65 owed to you in your directors loan.
Hi Heelan, Im glad your videos appeared in my feed - very informative and interesting! I have a question in regards to recording fuel for ltd. Should the whole cost of fuel be recorded in the 'fuel' account ? Then, the Accountant will use these figures to calculate the allowable cost while filling annual accounts?
If it’s a limited company you’ve got to decide how to deal with this, depending if company owns vehicle. I suppose the answer to your question is if the fuel isn’t for a company car, it’s not ideal to have it being paid for by company. You’d generally be better off paying for it personally and putting a business mileage claim in. It’s less messy.
HI, I`m starting a E-Commerce LTD Company where i`ll be traveling around regularly.The only problem is that i don`t drive, so Would i be able to follow these step with my mothers car. If so, should I be tracking the mileage or/and the fuel that i put in (keeping the recipts). Also. should i pay with a personal card then put a clam in with my business, or should i emply my mother and she could clam through the business? Thanks and keep up the good work.
Hi helpful videos. Looking at starting up a haulage company, how does it work with fuelling up the HGVs? I’ve looked into fuel cards and see these can generate VAT receipts, would we claim back the VAT and then expenses from the turnover? Need to book in with an accountant I think to get my head around it!!! Cheers
Most of the time the HGVs are going to be a company asset, so from a VAT point of view the fuel is *usually* reclaimable but will depend if there is any private use on them (can then be restricted).
Hi, great videos - very clear and helping with my newly set up ltd company, I'm doing all the accounts myself through Xero so trying to get a good understanding of everything. My question is - I've sold my personal van to my ltd company when I went from sole trader to ltd. The van is only used for business use, transporting materials and tools to various sites (not commuting as far as I understand). Does this make the fuel that goes in the van a direct business expense and as such is it fully tax deductible? If so, do I need proof that the diesel went into a specific vehicle or will the receipt from the petrol station suffice for my accounts?
Short answer is yes, if company owns van it can chose to fuel it and get a tax deduction. If you have personal use on it, there is a small tax charge levied to individual and company on it (and a bit of paperwork to do in a 'P11d' usually), but it's pretty small vs cost of running a van. Receipt is fine, but any proof you can supply to show it went into a given vehicle is also handy, should you need it in a HMRC investigation. Practically unless its a fuel card though, this can be hard to do!
Nothing, but if HMRC investigate you will have to try to remember or demonstrate why your figure is reasonable. Basically HMRC could just disagree with you and asses a lower figure (therefore increasing your tax bill).
Hello, really helpful video. Does it matter what date is on the petrol receipt in relation to the journey dates for mileage? E.g. using todays receipt to claim for a trip a couple of months ago.
Say for example you live in a different country to where your business operates but your bussiness is an investment bussiness could you claim fuel even though its not in the same country as the company but I could be diving round doing research for places to invest in the foreign country i live in?
What happens if a director (not owner) uses the company debit card to pay for the petrol on personal car for business trips? How can you account for that?
You probably allocate that to a directors loan account (as a personal expenses), and then counter it with mileage rates owed to him. Use a directors loan account th-cam.com/video/EfIgxZyHjZk/w-d-xo.html&t
@@HeelanAssociates Thank you very much for all the helpful information you are providing!! I have the exact same scenario: director/owner of limited company paid for petrol with company card on personal car for business trip. If I allocate the payment to my directors loan account (meaning I owe money to my limited company), how do I "counter it with mileage rates"? Many thanks in advance for your help!! Best wishes, Hendrik
You could, but depending on what it is (van or car) depends on whether its a good idea for tax. It depends also if you will have it available to use privately (such as being stored on your drive). The tax relief on the price of the vehicle is also linked to the Co2 emissions, which can range from 100% to only 6% a year...
I'm finding it impossible to find out how to actually submit mileage claims as the director of my limited company. There's no specific how to guidance on the exact way to do so. It's not a self assessment form is it?
If you are claiming it from your company it’s normally a case of working out the £ payable and repaying yourself.
You then enter it in your records as an expense and keep a log of how you came to that figure.
You get tax relief in the company as it’s reducing your profits.
Very useful video. I’m a director of my LTD company, I’m looking to get a 48K PHEV business lease. BIK is 8%. Currently I have my personal diesel vehicle on lease and claim 45p a mile. This vehicle is due to go back soon. If I get a company car, I know I have BIK & Class 1A NI. How do I claim mileage? It’s not 45p a mile I assume? I’m not VAT registered. Essentially what running costs can I claim? Wanted to do some figures myself and see if I’m better off. Would appreciate some advice.
If you go full company vehicle with BIK company pays the running costs.
You wouldn’t normally do mileage, certainly not the full 45p rate. You’d either fuel it through company (BiK issues) or you’d pay yourself the ‘AAmP rates’ (google this for rates) for the mileage.
@@HeelanAssociates spot on, that makes perfect sense. I’ll probably claim the miles, company paying for fuel and then paying tax on it sounds like extra work
Thank you very much for all the helpful information you are providing!! I have the following scenario: director/owner of limited company paid for petrol with company card on personal car for business trip. If I allocate the payment to my directors loan account (meaning I owe money to my limited company), how do I "counter it with mileage rates"? Many thanks in advance for your help!! Best wishes, Hendrik
Hi Hendrik, if it was a business journey you’d make an entry in your records of the mileage claim.
25p for first 10,000. 10p thereafter.
Say the claim was £65 your records would show a cost of £65 in mileage and would be £65 owed to you in your directors loan.
@@HeelanAssociates Thank you very much indeed! Is it not 45p for the first 10,000 miles?
Hi Heelan, Im glad your videos appeared in my feed - very informative and interesting! I have a question in regards to recording fuel for ltd. Should the whole cost of fuel be recorded in the 'fuel' account ? Then, the Accountant will use these figures to calculate the allowable cost while filling annual accounts?
If it’s a limited company you’ve got to decide how to deal with this, depending if company owns vehicle.
I suppose the answer to your question is if the fuel isn’t for a company car, it’s not ideal to have it being paid for by company.
You’d generally be better off paying for it personally and putting a business mileage claim in. It’s less messy.
@@HeelanAssociates thanks for the answer. Really helpful!
HI, I`m starting a E-Commerce LTD Company where i`ll be traveling around regularly.The only problem is that i don`t drive, so Would i be able to follow these step with my mothers car. If so,
should I be tracking the mileage or/and the fuel that i put in (keeping the recipts). Also. should i pay with a personal card then put a clam in with my business, or should i emply my mother and she could clam through the business?
Thanks and keep up the good work.
Mileage rates can be applied to any private car, so you could claim or her, whoever is incurring the expenditure of the business journey.
Hi helpful videos. Looking at starting up a haulage company, how does it work with fuelling up the HGVs? I’ve looked into fuel cards and see these can generate VAT receipts, would we claim back the VAT and then expenses from the turnover? Need to book in with an accountant I think to get my head around it!!! Cheers
Most of the time the HGVs are going to be a company asset, so from a VAT point of view the fuel is *usually* reclaimable but will depend if there is any private use on them (can then be restricted).
Hi, great videos - very clear and helping with my newly set up ltd company, I'm doing all the accounts myself through Xero so trying to get a good understanding of everything. My question is - I've sold my personal van to my ltd company when I went from sole trader to ltd. The van is only used for business use, transporting materials and tools to various sites (not commuting as far as I understand). Does this make the fuel that goes in the van a direct business expense and as such is it fully tax deductible? If so, do I need proof that the diesel went into a specific vehicle or will the receipt from the petrol station suffice for my accounts?
Short answer is yes, if company owns van it can chose to fuel it and get a tax deduction.
If you have personal use on it, there is a small tax charge levied to individual and company on it (and a bit of paperwork to do in a 'P11d' usually), but it's pretty small vs cost of running a van.
Receipt is fine, but any proof you can supply to show it went into a given vehicle is also handy, should you need it in a HMRC investigation. Practically unless its a fuel card though, this can be hard to do!
Daft questions the mileage allowance of 10000 does this reset every tax year. So in April I get another 10000 miles @ 45p ?
Yup! Happy new tax year :- )
I lost my log book for miles. what would happen then? Thanks
Nothing, but if HMRC investigate you will have to try to remember or demonstrate why your figure is reasonable. Basically HMRC could just disagree with you and asses a lower figure (therefore increasing your tax bill).
Hello, really helpful video. Does it matter what date is on the petrol receipt in relation to the journey dates for mileage? E.g. using todays receipt to claim for a trip a couple of months ago.
In reality it’s not likely to be a big deal, the mileage log detail is the most important bit. You could of being using fuel from months ago.
Say for example you live in a different country to where your business operates but your bussiness is an investment bussiness could you claim fuel even though its not in the same country as the company but I could be diving round doing research for places to invest in the foreign country i live in?
Travel is deductible still if international.
What happens if a director (not owner) uses the company debit card to pay for the petrol on personal car for business trips? How can you account for that?
You probably allocate that to a directors loan account (as a personal expenses), and then counter it with mileage rates owed to him. Use a directors loan account th-cam.com/video/EfIgxZyHjZk/w-d-xo.html&t
@@HeelanAssociates Thank you very much for all the helpful information you are providing!! I have the exact same scenario: director/owner of limited company paid for petrol with company card on personal car for business trip. If I allocate the payment to my directors loan account (meaning I owe money to my limited company), how do I "counter it with mileage rates"? Many thanks in advance for your help!! Best wishes, Hendrik
I don't own a vehicle but I need one for my limited business can I purchase one and then claim the price of the vehicle as an expense
You could, but depending on what it is (van or car) depends on whether its a good idea for tax. It depends also if you will have it available to use privately (such as being stored on your drive). The tax relief on the price of the vehicle is also linked to the Co2 emissions, which can range from 100% to only 6% a year...
@@HeelanAssociates it would be a car. I would use it 20% personal and 80% for business. The car will be producing less than 50g/km co2.
Video starts at 5:00 unfortunately he does waffle a fair bit.
Waffle, context, much the same 😃 thanks for watching! Hopeful you gained some knowledge after the 5 min!
I gained knowledge from 00:01