Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique.
We think recording your mileage should be simple, which is why a tool for both the FR Books web app and FR Books Mobile is coming very soon to allow you to record mileage on the go.
In the meantime there are a number of ways you can record your mileage in FR Books.
If you’re using a personal vehicle for which you’re charging your company mileage, you can record this through your director’s loan account, either per trip or in a daily, weekly or monthly summary.
To start keeping track of your mileage, go to Enter Transactions > select Banking and click on the ‘Enter Transactions’ icon next to the relevant director’s loan account.
You’ll then need to enter the date of the period end (for example the week-ending date if you are entering a weekly summary), the transaction type as ‘Money Out’ and the category as ‘Travel and Subsistence’ – or add a new one just for Mileage. Enter a description and the amount being claimed for mileage, for example if you travelled 1,000 miles at 45p allowance per mile, this would be a total of £450.
With this, the company is claiming the mileage as an expense, thereby reducing its profits. The amount entered will now be owed to the director, which can be withdrawn tax-free from the company.
When entering mileage as a sole trader or partnership in FR Books, the process is slightly different compared to a limited company. Let's take the same example as above of 1,000 miles to be claimed.
Take the same steps as before by heading to Enter Transactions > Banking.
In the Cash account, click 'Enter Transactions'. Enter the mileage claim payment as an outgoing amount in one transaction under 'Travel and Subsistence', with another transaction on the same date showing the same amount coming in under 'Capital Introduced'.
As you can see from the image, the net effect is zero, meaning the cash account balance will not change. However, the mileage expense will be included in FR Books and £450 will show as being introduced by the owner/partner.
