FreeAgent Update - Release Alsace

Posted on 14 March 2008 by Comments (1)

What We're Up To

The Good Stuff coming Real Soon Now. In the meantime:

UK Accounts: Opening Mileage Balance

In the UK the amount you can reclaim for mileage depends on how many miles you've done in that tax year. It's 40p/mile up to 10,000 miles and 25p/mile after that.

FreeAgent works all that out for you, but you can also now specify if you've already done a number of miles in the time leading up to your FreeAgent Start Date. It's a mileage opening balance, if you like, and you can specify it along with your other User details (Home > People).

UK Accounts: Payroll Improvements

The UK Budget 2008 has been announced, so you can now setup a 2008/9 Payroll.

We've taken the opportunity to improve the payroll setup process too: you no longer have to have a 6th-of-the-month payday (!) and you get the gross salary split equally between the appropriate number of months.

Invoice Devkit

We're just about to release our Customized Invoice Template Devkit for you design gods out there.

Our Invoice Gallery will be along in release 'Prosecco' two weeks from now, but we wanted to get started on designing on your own templates so that you're ready to go too.

More details on how to submit designs for your own account, or for our standard gallery, will be posted on The Central later.

This Week's Tweaks

  • Added a new Explanation/Expense category 'Charitable Donations'.
  • Fixed a problem with generated Invoice references.
  • Some general interface tidying.

Over to you...

Jason Holden, Tue March 25, 2008
Hi Ed,

Not sure if you have covered this else where, but incase you haven’t, don’t forget to let your users know that on the mileage claims they can reclaim some VAT back, not the full 17.5% as some would like, but none the less it is better than nothing.

The VAT element is based on engine size, so for Petrol engine 1401cc to 2000cc you would use a rate of 13pence per mile.

So for a claim of 100 miles at the 40pence rate you mention the claim for VAT will be based on 13pence.

The calculation will look like this:

100 miles at 13p per mile = £13.00 *7/47 = £1.94 (vat to reclaim).

This gives an entry like so:

Mileage claim 100 miles at 40pence per mile = £40.00
VAT to reclaim on the above £1.94
Net posting to motoring/travel in the accounts £38.06

I know it’s not a lot, but it is something many (including accountants) don’t realize and why loose out on tax money that is yours!

Jason
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