Enter in your cash flow forecast the cost of running any business vehicles. These might include breakdown trucks, vans and any courtesy cars you provide to customers. Also include the cost of any fuel you put into used vehicles that you have for sale so that potential buyers can test drive them. Don't include the cost of the vehicle itself - include that under 'Capital expenditure'.
Vehicle running costs include:
- the cost of fuel used for business purposes. Many of the vehicles that you work on may be non-runners or not road legal so if you offer a collection service, your business mileage may be quite significant
- servicing and repairs
- replacement tyres, exhausts and so on
- road tax
- any 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 exhibition and stay overnight.
Some of these costs, such as fuel, you will incur every month. 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.