A guide to recording mileage travelled in your own car in your FreeAgent account.
1. Find the screen
If you're a sole trader, and you have no staff, start by selecting the Expenses tab from the Overview screen.
If you're a sole trader with staff, a limited company director, or a partner in a partnership, choose 'Expenses' from the 'My Money' menu.
Alternatively, you can access the Expenses area quickly by selecting 'New Mileage' from the Quick Links menu on the Overview screen.
2. Choose the user
Once you're in the Expenses area, make sure you've selected the appropriate user (i.e. the person who spent the money) from the 'Show' drop-down menu.
3. New mileage
Select 'Add New Mileage'.
This brings up the Create New Mileage screen.
Date and distance
Enter the date you made the journey.
Put in how far you travelled, remembering that you may need to double the mileage for a return journey to record that you went out and back.
Reason for the journey
Put a description of why this journey was undertaken. Make sure it's clearly identifiable whether this journey is allowable or not for tax. For example, if it's ordinary home-to-work commuting then this is not allowable for tax, so make this clear in the description.
Type of vehicle
From the 'vehicle type' drop-down menu, choose the kind of vehicle you made this journey in: car (including van), motorcycle or bicycle. Please note that owners of sole trades and partners in partnerships cannot claim bicycle mileage.
As you change the vehicle type, the HMRC approved mileage rate changes according to the kind of vehicle that was used.
Reclaiming VAT on fuel
You need to be registered for VAT and have a VAT receipt for fuel enough to cover the mileage travelled on this journey if you want to reclaim VAT on the fuel. You can't reclaim VAT on the full cost of the mileage travelled, only on the fuel element. So if you do have a VAT receipt, choose that you want to claim for this mileage, and enter the fuel type of your vehicle and the capacity of its engine. FreeAgent will work out the correct VAT reclaim for you.
You can rebill this mileage to a customer if it was incurred while working on a particular project. Choose which project you want to rebill it to, and set the rate at which you're going to charge it to the customer. If you haven't yet set up the project, finish entering the mileage and save it, then set up the project. You can always edit the mileage later and rebill it, so long as it hasn't been paid for from the company in the meantime.
Setting up a recurring claim
If you know you will be taking this journey again, use the options under Recurring to enter the second and future journeys into FreeAgent now.
You may need to upload an attachment, for example a scanned copy of a fuel receipt, particularly if you are claiming VAT on the fuel element. To attach a scanned image, choose 'Select a file' in the 'File to attach' area. If you used the FreeAgent mobile app to capture an image file and save it to the 'Files' area of your account, select 'Choose from saved files' instead and follow the instructions. Please note that you won't be able to use the FreeAgent mobile app if you have an unincorporated landlord account.
Once you've finished entering the mileage, complete the process by selecting either:
- 'Create New Expense' to save the journey
- 'Create and Add Another' to save the journey and start entering another one
- 'Cancel' to close the screen without saving the journey
Once you’ve done this, you’ll be able to see the mileage in the list of costs incurred by this user .
Recording mileage rates for a company car
The mileage rate programmed into FreeAgent is for business travel in private cars only, but you could create additional mileage rates. An example of this would be a rate for a company car.
To do this, work out your mileage manually and enter it by using the 'New Expense' button instead of using the 'New Mileage' button.
You might also want to add a new category to track these expenses. In the example of a company car the category name could be 'Company car mileage'. You won’t be able to name the category 'Mileage', as FreeAgent uses this automatically for business mileage in private cars.
Need the total miles for the tax year?
To find your total mileage for the tax year, begin by exporting all data from your FreeAgent account. Next, navigate to the 'Expenses' tab of the exported spreadsheet file and then total up the numbers in the column that details your mileage entries.