Enter in your cash flow forecast the cost of running any business vehicles. This includes delivery vehicles and farm vehicles like tractors. (Don't include the cost of the vehicle itself - include that under 'Capital expenditure'.)
Running costs include:
- the cost of fuel used for business purposes. If you plan to offer a delivery service within a certain area estimate what that mileage will be. If you know the average fuel consumption of your vehicle you can then estimate how much the fuel will cost you
- servicing and repairs
- replacement tyres, exhausts and so on
- road tax
- tolls and congestion charges incurred by the business
Travel expenses include all the other expenses incurred on business travel that is not made by car. These might include:
- public transport
- hotel expenses
For example you might travel by train to a trade show and stay overnight.
Some of these costs, such as fuel, you may incur every month. If you run vehicles like tractors then it may be worth installing a DERV tank so that you can fill them up at your premises. Off-road vehicles like tractors can legally be run on cheaper 'red diesel' if they are used for horticultural purposes.
Others, such as road tax, you can pay annually, every six months, or in monthly instalments (by direct debit). Enter your estimate of motor and travel expenses in the months when you expect to pay them.