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" ?
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.