Travel Expenses

[PoorbutHappy]

In IVA (with Melanie) but figure this might be an interesting question anyways.

My new job pays travel expenses.

As a rough estimate (only been there a few weeks so far):
1. Personal Travel = 800 miles
2. Work Travel = 200 Miles (not guaranteed). Expenses £80.
3. Actual fuel cost £80 per month (£16 Work Related estimate)


So my question is how to account for and allocate the £80 income?

Take 20% as money already spent on fuel and put rest in my car repair "slush fund" ?

[MelanieGiles]

Travelling expenses are paid to you to cover travel and the provision of a vehicle, and are therefore not deemed to be income. A large part of that money is to ensure that you maintain a reasonable car which you can use as part of your work duties, and not embarass your employer by driving around in an old banger! Some of the balance is therefore attributed to depreciation.

The balance of the monies should be put into a separate savings account to go towards car replacement when this is necessary.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Adam Davies]

Hi
A good point by Melanie
Travelling expenses cover not only fuel but repairs and depreciation
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[PoorbutHappy]

In order to keep things simple:

25% representing actual Fuel
25% Representing Repairs
50% Representig Depreciation

That seem reasonable?

[MelanieGiles]

I think that your IP will be happy to accept that justification!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp