Industry sector:

Osteopath: Motor and travel expenses

Motor expenses

You should enter in your cash flow forecast the cost of any business mileage. (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 home visits within a certain area,try to make an estimate of your total mileage. 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

If the vehicle is used solely for business use then you should allocate all of the servicing and repair costs to the clinic. If it is your private vehicle which is used occasionally for business purposes then you should only allocate a proportion of the cost to the clinic.

Travel expenses

Travel expenses include all the other expenses incurred on business travel that is not made by car. These might include:

  • public transport
  • hotel expenses
  • subsistence

For example you might travel by train to a residential training course or seminar which involves staying overnight in a hotel.

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.