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djeosteopathy
Level 1

Fuel mileage expenses uk

"due to the huge increase in fuel (petrol) costs, does anyone know if the fuel allowance will increase for self employed or can I change from claiming mileage (45p per mile) and just claim the full tank (receipt) instead."

Solved
Best answer March 09, 2022

Accepted Solutions
Rea_M
Moderator

Fuel mileage expenses uk

I'm here to share details about fuel allowances and claiming mileage in QuickBooks Self-Employed (QBSE), @djeosteopathy.

 

QBSE uses the simplified expense method (with flat rates) to calculate the allowable business expense for your car, van, or motorcycle. With this method, you're unable to claim vehicle insurance, repairs and servicing, or fuel costs. But you can claim all other travel expenses in addition to your simplified expense amount.

 

To know more about this, please refer to this article: Simplified Expenses mileage method (with flat rates) versus Actual costs for vehicles.

 

Also, to further guide you in claiming mileage and all other travel expenses in QBSE, I'd recommend checking out these articles:

 

 

Let me know in the comments if you have other mileage concerns and questions about recording fuel allowances in QBSE. I'll gladly help. Take care, and I wish you continued success, @djeosteopathy.

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6 REPLIES 6
Rea_M
Moderator

Fuel mileage expenses uk

I'm here to share details about fuel allowances and claiming mileage in QuickBooks Self-Employed (QBSE), @djeosteopathy.

 

QBSE uses the simplified expense method (with flat rates) to calculate the allowable business expense for your car, van, or motorcycle. With this method, you're unable to claim vehicle insurance, repairs and servicing, or fuel costs. But you can claim all other travel expenses in addition to your simplified expense amount.

 

To know more about this, please refer to this article: Simplified Expenses mileage method (with flat rates) versus Actual costs for vehicles.

 

Also, to further guide you in claiming mileage and all other travel expenses in QBSE, I'd recommend checking out these articles:

 

 

Let me know in the comments if you have other mileage concerns and questions about recording fuel allowances in QBSE. I'll gladly help. Take care, and I wish you continued success, @djeosteopathy.

More Than Just A Gardener
Level 1

Fuel mileage expenses uk

In response to the Quickbook's reply, when my expenses come out of my bank account such as insurance and fuel, does this mean that I exclude the transaction as I can't claim for them? Thanks.

GeorgiaC
QuickBooks Team

Fuel mileage expenses uk

Hi @More Than Just A Gardener, thanks for joining this thread. 

 

If you don't use the pence/mile (simplified expenses) method, then you would have to categorise everything relating to your vehicle expenses in QuickBooks as Travel expenses (allowable). 

 

If you do use the pence/mile method (by auto-tracking or entering miles on the Miles tab) then you would categorise all other vehicle-related expenses as Car/van expenses (disallowable). 

GeorgiaC
QuickBooks Team

Fuel mileage expenses uk

Hi @More Than Just A Gardener, thanks for joining this thread. 

 

If you don't use the pence/mile (simplified expenses) method, then you would have to categorise everything relating to your vehicle expenses in QuickBooks as Travel expenses (allowable). 

 

If you do use the pence/mile method (by auto-tracking or entering miles on the Miles tab) then you would categorise all other vehicle-related expenses as Car/van expenses (disallowable). 

More Than Just A Gardener
Level 1

Fuel mileage expenses uk

Thanks Georgia

Does Quickbooks automatically categorise these as disallowable as I can't find a way to mark it as such?  If so, this would be a useful note to add to the quickbooks information online.

Thanks

RCV
QuickBooks Team
QuickBooks Team

Fuel mileage expenses uk

Thanks for coming back, More Than Just A Gardener.

 

We'll need to manually categorise your insurance and fuel in QuickBooks Self-Employed (QBSE). As always, since all businesses are unique, you may wish to reach out to your accountant for additional guidance on how to record them as disallowable. Also, actual expenses also known as the actual costs, this method will require you to keep detailed records of all your motoring costs for the year. You'll need to add up everything you've spent during the year and work out the business percentage/proportion of that. Which you can then claim as an allowable expense. These records may include:

 

  • Insurance
  • Fuel costs
  • Vehicle tax
  • Repairs and servicing
  • MOT

 

Please take note of the mileage reading at the start of the accounting period when using this method. An example of it is to remember if you use your car for both business and personal purposes. You will only claim for the proportion of the costs that relate to the business use. Here's how to add and categorise vehicle expenses in QuickBooks Self-Employed:

 

  1. Go to Transactions.
  2. Choose Add transaction.
  3. Select Car/van expenses as the category.
  4.  If you use your car for both business and personal purposes, categorise these costs as Business. Your tax pro will calculate the business/personal ratio in your tax return based on the total expense amount.

 

Car expenses and mileage are huge topics, but you can learn more from HMRC here. Feel free to visit our QBSE Help Article page for more insights about managing your business.

 

The Comments section below is the best place to ask questions or post any other concerns if you have any. Don't hesitate to give me a shout and I'll be with you right away.

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