Book- keeping?

Question

Any book-keeper out there? When calculating the fuel allowance for profit and loss at HMCE rates, as an expense for business self employed person. What would be the the double entry in the accounts?

Answer 1

I assume you mean you are claiming motoring costs at 40p per mile (reduced after 10,000 miles)?

Fisrst you should be aware that all actual motoring costs (fuel, servicing, tax and insurance) should be charged to drawings as a private expense.

You would then calculate the business claim and -

Debit Motor expenses, and
Credit Drawings (or you could credit amount Introduced)

Your capital account will then effectively have been debited with the deemed private proportion of the motoring costs.

Answer 2

You would show the full amount of all motoring expenses in the 'motor' account. Any adjustment for private use is done on the Self Assessment - not within the accounts.