Most of us may know that the contractors prefer to work as a limited company. This is because it is a tax-efficient way to work in the business market. This depends on the business circumstances as well. There is a major patch of struggle while managing the daily tracking and many of us wonder about mileage trackers for business.
In case a personal vehicle is also being used for business work, the money has a chance to be saved due to the mileage deduction. However, the claim that is made for travelling have to support as it is the requirement of HMRC to have solid pieces of evidence which can be provided in the form of a mileage log. Here comes the importance of mileage tracking to make a rightful claim for the expenses of contractors.
Moreover, before we delve into further discussion, we need to have a look at the points of discussion in today’s article. This includes the following:
- Mileage Trackers for Business – HMRC Requirements
- Mileage Tracking Apps
- The Bottom Line
Mileage Trackers for Business – HMRC Requirements:
It is strongly recommended by the professionals to seek a smart way of tracking every time you complete your trip. The question that arises here is that what details should be there in the mileage log? On a general note, the requirement made by HMRC include the following:
- Distance Travelled
- Final Destination and Initial Point
- Business reasons for the trip
- Date of the journey
Moreover, it is suggested to the self-employed individuals to have accurate tracking of their personal mileage that may be is required at some point. A time period of five years is suggested because the tax agency may need to review your past history in the process.
Let us manage your practice from A to Z. We’ll take care of everything on your behalf.
Mileage Tracking Apps:
In the era of technology, everything has become smart and so is the apps doing the cause for recording or tracking the mileage. Here is the list of popular apps that are working just fine in this regard. Thes include the following:
- Quickbook Self-employed
- Mile Cloud
This app is also known as an all-in-one tracker. It works best for self-employed individuals. It has the ability to offer mileage tracking as well as many other accounting services. The list of the functionalities is quite smart that include the following offers:
- Mileage tracking
- Bank account connections
- Business expenses tracking
- Attaching receipts for the transactions made
- Reminder and calculation of the tax payments
This is also one of the prominent apps that offers mileage tracking and the other factor is taken care of by this app is estimated taxes. This app can offer the best services if it is connected to the bank accounts and it starts to keep the records and even gives reminders for the scheduled payments if any.
This app also provides the option of mileage tracking just by paying a small amount for a fee per annum. This app has the option of entering data manually as well. Categorisation of the trips is also possible if one decides to use this app. The reports of mileage tracking handled by this very app is quite reasonable and is available in PDF and CSV.
Happy with your setup? Let us manage your client. We’ll act as your back office.
The Bottom Line:
Now that you have developed a better understanding of Mileage Trackers for Business, we can sum up the discussion by saying that it has become very easy by opting for the services offered by these mileage tracking apps that the hassle of manually entering the data that has high chances of mistakes is not a worry in the business world.
We hope this article has helped to develop a better understanding for you.
Disclaimer: This article intends to provide general information based on Mileage Trackers for Business and relevant details.