Hi my query is about a self-employed cleaner who uses their private car for travelling back and fore to the different client locations.
They are paying for some of the fuel through the company and then providing me with a receipt and the mileage used in conjunction with the fuel payment.
How do I account for this in Sage? I thought the easiest way would be to work out the mileage cost for each journey/receipt then deduct that amount. Put part of the fuel payment through as mileage expense and the remaining as drawings?
Is there a simpler way
eg - Fuel receipt £40, mileage 20 miles @ .45
So bank payment of £9 for mileage and £31 for drawings
As a sole trader, you can either claim mileage, or, claim full car costs. What you are trying to do sounds a bit faffy, to be honest!
You could just pick up any car costs paid privately, and bring them in via capital introduced, and disallow a fair private usage percentage. In that scenario, you could also claim some capital allowances on the car.
Or, you could put all car costs paid by the business account to drawings, and bring in full mileage. To put this into sage - journal all fuel and car costs posted to the PL, to drawings, then bring in mileage via journal.
