Mileage/Tracking Report - Ability to see employee mileage within the tax year
We need the ability to see how many miles an employee has travelled within the tax year. This is so that we can follow HMRC guidelines in respect of the pence per mile that is paid to the employee. Currently the rules state that up to 10,00 miles can be reimbursed at 45p per mile and thereafter this rate is reduced to 25p per mile.
This could also include the ability to set a default rate to avoid any errors made by the employee and to then generate an alert once the employee exceeds 10,000 miles and automatically reduce the default rate to 25p per mile.
Connor Preece
shared this idea
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Deanne Lugton
commented
This is needed in Australia to keep in with guidelines from the ATO
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Chad Leembruggen
commented
The original comment appears UK based and in nearly 2 years, no helpful addition has been made. There surely must be a function to total up the miles claimed for each claimant, so any thresholds can be monitored
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Caitlin Ottley
commented
The IRD requires businesses to keep a motor vehicle log book for at least 90 days, to determine how much a vehicle is used personally vs. for business purposes. The end result is a % that the business can claim of costs for the vehicle, for the next 3 years.
This is an arduous task that a lot of our clients have trouble with. If you don't keep a log book your claim for motor vehicle costs is just a per km rate which comes out a lot less than the actual costs would be, especially if the client travels over 14,000 km's per year. Or you file and pay fringe benefit tax to the IRD.
Your product Hubdocs has revolutionized record keeping and our clients that are using it have significantly improved their records, because it is just so easy.
For example, clients that I prepare GST for have the app on their phones and just take a picture of the receipt and send it through to Hubdocs for me to process. Invoices received on email are forwarded into Hubdocs (working on auto-forwarding as a standard, but having some teething issues).What I am proposing is that in keeping with your track record of streamlining and improving processing for businesses, you bring in a logbook feature to Xero. Clients would enter their odometer reading at the start of their 90 days, and then just the to and from addresses for business travel (powered by google maps perhaps, so this auto fills the full address for them), rather than the odometer readings i.e. home to accountant, office to xx supplier etc.
The app would pull today's date by default, but be editable if you had a hectic day and didn't stop to load your trips until the next day.
It would need to be able to potentially manage multiple log books, one for each user that has it ticked on (sort of like timesheets in payroll) but all of the businesses data be viewable by us as the accountant (with a tick box maybe?), so we can calculate the % at the end of the 90 days.
It would be great if they could 'favourite' recurring trips and quick add these to their log book.
It would also be great if it could give the user a heads up when a new log book is required, i.e. after 3 years, when a new vehicle is purchased etc etc.
For reference I have linked the IRD articles on their requirements for a log book, which the software would need to be able to meet.
https://www.ird.govt.nz/income-tax/income-tax-for-businesses-and-organisations/types-of-business-expenses/claiming-vehicle-expenses/use-a-logbookThanks
Caitlin