Paying for petrol

[Lolla]

Hi all

I am mobile (self employed) and am having a conundrum over which account to pay for petrol out of.

I have a business bank account and my personal one (which is a joint one with me and my partner, where all of our bills come out of etc for the house).

I use the car for both personal and business use. I have been paying for petrol on my personal account and entering all the business mileage I do on my expenses spreadsheet. However, I am unsure if this is correct as this means that my personal money is being used on business petrol. But I do use the car (albeit rarely) for personal errands.

Should I be paying for petrol from my business account or personal one?

I probably use the car about 5% of the time for personal. The rest is all travelling to clients houses.

Thanks xx

 

[lbrown332]

I'd probably start paying for the petrol out of the business account seeing as you barely use the car for personal use and 95% of your car use is for work!

Leanne
X

 

[sarah1988]

I always pay for my petrol out of my business account but im not sure if there's a right or wrong really x

 

[Nikki12]

no the feeling. I use whichever i have money in lol. ummm my uncle does my accounting and he says it doesnt matter! as long as ur always keeping ur milleage record!x

 

[Redduck]

I used to pay for petrol out of my personal account as there used to be a set amount you could charge per mile for business. I used to just write down the mileage for each journey and put that amount in for expenses. Might be worth looking to see if that's still the case.

 

[Florry]

Have a chat with your accountant - mine told me to claim 45p per mile from the business which covers petrol and wear and tear on your car.

I pay for the petrol on my personal credit card and at the end of the month the 45p per mile money which I record for each business trip is added to my wages tax free (I am a director in my company so it may be different for you).

Always worth asking the professionals as it can save you a lot of tax!

 

[Baggybear]

As I'm not putting receipts in for petrol (I claim the 45p per mile and that covers all motoring expenses - petrol wear & tear, insurance, tyres, MOT etc..) it makes no difference where the money comes from to pay for it.

I'm still working at a loss so have to pay for it with my money in reality or I wouldn't have petrol in the car to be able to get to the clients in the first place lol.

 

[Lolla]

Thanks for the advice all I don't have an accountant so I think I'll pay for it out of the personal account then at the end of the month work out mileage x 45p and put that back into the personal account from the business account.

Thaaaanks!!

Sent from my GT-I9100 using SalonGeek

 

[Mike16300]

If the business is providing a car to an employee, the employee will have to pay tax as it has a benefit in kind, this is based on the cars value, and could be more than £1500 per year.

You will probably find that it is more tax efficient to own the car yourself, and claim the business mileage allowance of 45p, this is only for the 1st 10,000 miles, after that it drops to around 12p (check the current rates with hmrc website).

I'm not sure if these "expenses" are taxable or not, check on hmrc or ask your accountant.

A van (like a small fiesta or corsa van) isn't taxed as a benefit, so you might want to think about getting something like that.

 

[shedunlop]

After the first 10,000 miles it drops to 25p per mile so not quite as bad as 12p. This is the way the tax office prefer us to claim for our cars in our trade and it works out quite well really. :wink2:

 

[nalovely]

As I'm not putting receipts in for petrol (I claim the 45p per mile and that covers all motoring expenses - petrol wear & tear, insurance, tyres, MOT etc..) it makes no difference where the money comes from to pay for it.

I'm still working at a loss so have to pay for it with my money in reality or I wouldn't have petrol in the car to be able to get to the clients in the first place lol.

Are you mobile as well? How do you charge your petrol or just free but put in the price up? I have no idea how to star with it, I worried if i charge the same price to hight street nails shop, and also ask for pay the petrol, I don't think i could get clients, although I can do pretty good job.
Any ideas please? many thanks x