The Book-keepers Forum (BKF)
The Book-keepers Forum (UK) -> General Book-keeping & Accounting -> travel expenses (confusion element!!)
Post Info TOPIC: travel expenses (confusion element!!)
Tom H P


Veteran Member

Status: Offline
Posts: 27
Date:
travel expenses (confusion element!!)
Permalink  

Hi sorry to be a pain - what I'm confused about is when the director pays for petrol for the company car, and claims 40p a mile standard rate for business miles. How does it tally up, when the money spent on fuel (therefore the cash at bank) will be different to the travel expenses that actually goes through the accounts (because of the mileage allowance). Won't the whole thing not balance?

Thanks very much,

Tom.

__________________
Flex Accounting Services


Senior Member

Status: Offline
Posts: 207
Date:
Permalink  

The 40p per mile is to reimburse employees when they have used their own car and their own fuel. If it's a company car the mileage rate is lower depending on the co2 and the engine size of the company car. If your director is paying for the fuel directly from the company, ie not paying for it himself then there won't be any mileage claims involved.

__________________
Beverley Flanagan MICB, CB Dip, PM Dip.
info@flexaccounting.co.uk
www.flexaccounting.co.uk
farmergiles


Veteran Member

Status: Offline
Posts: 96
Date:
Permalink  

Is the director claiming reimbursement of personal expenditure for the fuel expenses?
If he is using a company card or company cash then you can't reimburse at 40p a mile.
If he is paying for it himself and then claiming mileage allowance then the fuel expenditure will not be going through the books.

(Great minds think alike, Bev....lol)

-- Edited by farmergiles on Monday 21st of December 2009 07:11:17 PM

__________________
Tom H P


Veteran Member

Status: Offline
Posts: 27
Date:
Permalink  

Thank you very much guys.

So if the director is claiming reimbursement of personal expenses for the fuel (at 40p per mile), then would it be treated in the same way as it would be if an employee was claiming these expenses?

Thanks again.

__________________
Flex Accounting Services


Senior Member

Status: Offline
Posts: 207
Date:
Permalink  

Tom, it would be the same yes, however, if its a company car then it would be less than 40p per mile (would vary due to the factors mentioned in my above post). BUT, he wont be able to claim the mileage if the fuel is already being paid for by the company. Mileage allowance is only payable if the fuel used is the employees/directors own fuel (ie paid for out of their own pocket). The mileage allowances are therefore given to compensate for the fuel used for whilst on business and wear and tear of using your own car (hence the rate per mile being lower when in a company car as wear and tear wont be at the employees expense).

I hope this makes sense.

Yes Peter, great minds do think alike !!!

__________________
Beverley Flanagan MICB, CB Dip, PM Dip.
info@flexaccounting.co.uk
www.flexaccounting.co.uk
Tom H P


Veteran Member

Status: Offline
Posts: 27
Date:
Permalink  

Thank you guys that's cleared it up - and my previous "muddled" post too. Thank you very much.

__________________
Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.
The Book-keepers Forum (UK) -> General Book-keeping & Accounting -> travel expenses (confusion element!!)
Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  
©2007-2024 The Book-keepers Forum (BKF). All Rights Reserved. The Book-keepers Forum (BKF) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Book-keepers Forum and BKF are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Book-keepers Forum. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Book-keepers Forum. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: bookcertltd@gmail.com.

Privacy & Cookie Policy  About