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WJBB
January 18, 2024
Question

Simplified Mileage

  • January 18, 2024
  • 1 reply
  • 0 views

Hey there, I use the simplified mileage method and when I log the mileage on the quickbooks software it automatically deducts the amount from my tax report but it doesn't include the amount as an expense on my P&L report. I would like to use the software to track my mileage but then make an actual physical transaction from my business account to my personal account that represents the 45p per mile allowance. But I don't want to duplicate the cost on my tax return as quickbooks automatically does this if i use their software to track the miles even though I haven't made a transaction for them. Do I need to abandon the quickbooks mileage tracker and just log it elsewhere then make transactions to my personal account that represent the trips or is there a happy medium where I can use the software but also pay myself 45p per mile for my trips without duplicating the allowable expense. Thank you for any responses

1 reply

A
Ashleigh1
January 18, 2024

Hello WJBB, thanks for posting on the Community page, it would be best if you record the 45p manually, rather then setting it to automatically. 

T
theholistichamper
March 24, 2025

HI

 

I have exactly this question but I was a little confused by the response, so im writing for a little clarity please.  I add my mileage in manually into the mileage tracker under add trip.  They show as a value for the year on taxes but not P & L, how do I get these costs to show on P & L?  Remove mileage records totally and add as a transaction each time?

 

Otherwise they would show twice if I left it in.  Why doesn't it show in P & L? 

thanks

S
ShangY
March 24, 2025

I completely understand your concerns about tracking mileage and how it impacts your financial statements, @theholistichamper. It’s an important topic for managing business expenses, especially when it comes to vehicle mileage. I'll explain the two primary ways to handle mileage expenses and offer some recommendations to help you out.
 

The reason why your mileage entries show up for tax purposes but not on your P&L is because your mileage allowance is calculated based on HMRC’s flat rate, which is primarily intended for tax deductions. This doesn’t categorise mileage as a direct expense in the accounting records. This is called The Simplified Method.


The Actual Expenses Method, on the other hand, requires keeping track of all vehicle-related costs like insurance, fuel, and repairs. These costs can then be entered into QuickBooks as transactions (or categorise them directly if the bank account is linked), making them visible in the P&L statement.
 

To ensure you maximize your tax benefits, I recommend that you accurately enter all business trips in your mileage tracker. If you choose the Simplified Method, you need to stick with it for that vehicle. If you're thinking about switching to the Actual Expenses Method, it's best to consult with an accountant or tax professional. They can provide guidance on HMRC guidelines and help you understand the impact on your business finances.

For additional information, refer to this guide: Car mileage and travel expenses explained in QuickBooks Self-Employed.


If you experience any issues with mileage tracking in the future, you can find support specific to your device:
 


For further questions or if there's anything specific you'd like to discuss further, please don't hesitate to reach out. Your success is important to me, and I want to ensure you have all the information you need to make the best decisions for your business. Take care, and I look forward to hearing from you soon!

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