Recording your business and private mileage is crucial. HMRC requires it for your business – and accurate records, too.
So Trafficmaster’s free On-Demand Mileage Reporting System for all BMW and MINI business buyers is a good one. Although you do have to purchase the Trackstar stolen vehicle tracking system, too. But, then, that should bring your insurance cover down. And give you some peace of mind, too.
But why do you need to keep accurate records? Well, to qualify for tax relief on your business mileage you need to be able to demonstrate – should the taxman ask – your split of business and private mileage. And remember, commuting from home to work is private mileage.
If you run a private car but use it for business – as many owner/drivers of their businesses do – you can use the approved mileage rate to reimburse yourself. This is 40p per mile for the first 10,000 miles.
Alternatively, if you are an employee and use your private car for business you can claim the approved mileage rate from your employer. If they pay you less than the full 40p, then there is mileage allowance relief – you can claim this on your tax return. It’s the difference between what your employer pays and the 40p rate.
If you have a company car and pay for fuel you can get tax relief on the fuel cost element of your business travel. In this instance you need to use the advisory fuel rates for company cars.
But – and this is the big but – you must keep a record of your business mileage to calculate your expenses.
The Trafficmaster system is one way to keep records. Personally, I keep a log on my Apple iPhone calendar. When I make a business trip in my Audi A4 I enter the date and the mileage.
Actually, if you do use an iPhone, my son Matt found this particularly useful app – Road Trip Lite. This can record mileage and fuel consumption. I haven’t downloaded it yet, but I intend giving it a try.
But a diary or a logbook in the car will do – that’s equally effective.
But the point about it is this: whichever method you use, keep the records. But I’m sure your accountant has told you that already!
If you want to know a bit more about this subject, then these articles will also be useful. Click on the links to learn more.
Tax: approved business mileage rates (AMAPs)
Tax: latest advisory fuel rates for business mileage
Tax: how to work out free fuel benefit
The mileage records you need for HMRC
