New bookkeeper requires help!! - The Book-keepers Forum (UK)

CET Bookkeeping · Member

New bookkeeper requires help!!

Shamus · Forum Moderator & Expert

Are you in construction or bookkeeping?

this one is from Buddy Honey and the other one is from Honey Buddy???

In answer to this question regardless of the method used there must be a log of mileage to prove business usage otherwise it is all private usage.

Mileage rate for use of private cars is almost always more beneficial to the client.

littlebookkeeper · Senior Member

Yes, they will need to give you an idea of the business mileage, you will then allow 40p per mile for the first 10,000 and 25p thereafter (though I seriously doubt it will be more miles than that).

You should also mention that business mileage does not include the miles travelling from home to business and home again. Also any mileage for a dual business and private purpose will not be allowed either, eg going to town to buy supplies and then doing your shopping!

Good luck, it may prove difficult to get the information you need!

Carole

RobH · Expert

Mileage rate is usually better if a lot of business miles are driven, otherwise (especially with the cost of fuel) it is probably more efficient to claim all motor expenses (actual fuel costs, services, rfl, etc) and capital allowances on the vehicle. Obviously adjust for personal use.

If you are the same poster as the Construction person, it would make life easier if you just wrote under the one name, we don't mind if the queries seem basic as we all started at the same place!

Rob

CET Bookkeeping · Member

Rob, Shamus, thank you both for your replies....

Hands up I am the same person, not really used forums before and to clarify a couple of points I was actually sitting with my construction client, who also happens to be a friend, at the time and thought best to act as both parties.... apologies.

I have found your response time and information very informative and will continue to use the forum if thats ok but just under the correct login of CET Bookkeeping.

Many thanks

Shamus · Forum Moderator & Expert

Hiya,

welcome to the forum.

as Rob states we don't normally bite.

We can't always guarantee response times as it all depends on how busy we are but generally there's someone around to field questions and if not the front page quickly shows any questions with no responses so I for one tend to go to those first.

So, what's you're affiliation? ICB / IAB / AAT??? If non then of course we have to ask the question, you do have MLR cover don't you?

Anyway, as I say, welcome to the forum and looking forward to chating lots in the coming months.

All the best,

Shaun.

CET Bookkeeping · Member

Shaun,

Thanks for response, I have been doing bookkeeping now for approx 8 years, a few years back work paid and put me through pitmans bookkeeping and accounts level 1 & 2, I was told that following that I would have accreditations for the final level, which I am yet to complete, but planning to. After researching certain literature and forums the MLR has been applied for, so all in hand thanks.

One last question for tonight if thats ok, for the dance school client, it appears that the majority if not all of the petrol receipts are for personal use, therefore if she is paying for this out of company takings, where best am I to show this in the accounts? (her loan account?)

Many thanks and have a good evening.

Rhianrach · Expert

Drawings one of my two favourite accounts.

I believe she will get away with usage to and from her place of work and the rest would be drawings. smile

Or calculate the usage and only put that figure through, indicate this on the receipt and keep receipt for the records.

Shamus · Forum Moderator & Expert

I concur with Steve, it's Drawing.

Also agree with the mileage where home is office but the lack of a mileage log makes that a very academic answer so it's all / mostly going to end up in drawings.

Wella · Expert

Rhianrach wrote:

Drawings one of my two favourite accounts.

I believe she will get away with usage to and from her place of work and the rest would be drawings.

Hi Steve

If her place of work is a fixed premises and not a clients premises, then I don't think it is claimable but I stand to be corrected.

Bill

Shamus · Forum Moderator & Expert

No correction there Bill, your right.

I stand by my point though that where home is office and you attend the client site then that is not home to work so is allowable.

RobH · Expert

Welcome to the forum!

Rob

Rhianrach · Expert

At least I was half right, it's an improvement on being totally wrong. smile

semsley · Guru

I don't think going from home to work would be covered in these circumstances as presumably it would be a fixed location whether rented or hired or owned. However, if she ran classes in different places/rooms then it probably could be as there wouldn't be a fixed place of work.

CET Bookkeeping · Member

Thanks for the above guys, very informative and a great help.

I have also been asked to run a payroll for a client for the last 4 months of last years tex year, obviously with them coming in under the threshold etc, as this will be back dated I am slightly worried about the implications this will have with the revenue,

i.e. once I have processed the payroll for Nov, Dec, Jan, Feb and Mar the Employer should have made payments across to the revenue on the 19th of each proceeding month, as I am now going to do this after the time would they be eligible for fines etc?

RobH · Expert

They need to get P35 in asap. This is already late so a fine of at least £50 per month will be accruing. The late payments for paye/ni will attract interest from April 19th. However from this year there is a fairly punitive fining system being applied, so make sure all payments are made on timegoing forward (presumably they are late with April and May this year so will be getting a small fine for that, but the fines add up for eachmonth that hasn't been put in and the percentage gets bigger)

Rob