Paying for fuel through a business without a company car

someone putting fuel in white car

Many business owners find themselves using their personal vehicles for work-related tasks. While it may seem convenient to pay for fuel through a business account when you don’t have a company car, it’s crucial to follow the proper procedures by submitting an expense claim instead.

How should I report my business travel?

If you do not have a company car and use your personal car for business use, you should ensure you have the relevant insurance to use your car for business use and complete a mileage claim for the business miles you have travelled.

Paying for fuel through a business account for personal use can lead to complex record-keeping issues. Separating personal and business expenses becomes challenging, and this can potentially trigger audits and tax compliance problems down the line.

Submitting an expense claim for mileage simplifies the process by clearly explaining your business-related costs.

The current HMRC ‘approved amount’ is as follows:

  • Cars and Vans – 45p per mile for the first 10,000 miles and 25p above 10,000 miles
  • Motorcycles – 24p per mile
  • Bikes – 20p per mile

Find out more here, including what you can claim if you carry passengers related to work!

What can I claim as mileage?

Mileage that you claim as a business expense, should be related to legitimate business travel. This means that you must be using your personal vehicle for business-related purposes, such as attending client meetings, making deliveries, or traveling to a temporary workplace. Personal trips should not be included in your business expenses.

This approach not only ensures compliance with tax laws but also promotes fairness, transparency, and accountability within the organisation. It also provides a clear paper trail that can be useful during audits or internal reviews. It helps ensure accountability and transparency in your company’s financial practices, making it easier to track and justify expenses related to your business.

These are some of the questions that we get asked in our Sage Lady Academy Live Q&A each week. Our membership provides affordable training, support and mentoring from Bec Wooderson (aka “The Sage Lady”) on all matters relating to Sage 50 Accounts, bookkeeping and accounting principles via training, masterclasses and our weekly Live Q&A, where you can submit questions for Bec to answer and show you how it’s done, plus much more! If you are a Sage 50 Accounts user, why not find out more about The Sage Lady Academy?

If you need any support with your Sage 50 Account software, why not join one of our Sage Facebook support groups

19.09.2023

“Any advice relating to accounts or tax should be sought from your tax accountant. Sage Accounts Solutions Limited will not be held responsible for any loss or damage caused as a result of the information contained herein.”

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