Industry sector: Retail and wholesale

Milk round: Motor and travel expenses

Enter in your cash flow forecast the cost of running your milk float/s. Don't include the cost of the vehicle itself - include that under 'Capital expenditure'. If you plan to operate as a franchisee you will pay a weekly amount to the franchising dairy to cover the cost of the hire of the float. Enter this fee in the 'Other payments' entry in the cash flow.

Running costs include:

  • the cost of fuel used for business purposes if you plan to use a petrol or diesel float - this may be more suitable than an electric float for large rounds covering longer distances
  • servicing and repairs
  • replacement tyres, exhausts and so on. If you have an electric float you will need to replace the battery from time to time
  • road tax (petrol and diesel vehicles only - electric vehicles are exempt)
  • any tolls and congestion charges incurred by the business

Travel expenses

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

  • public transport
  • hotel expenses
  • subsistence

For example you might travel by train to a trade show 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.