Company Car or Car Allowance Connundrum

PT66

I went down the company car route and had it ' fully expensed' as I do a lot of private mileage. I was lucky enough to be able to pick the car I wanted and it is very nice not having to worry about budgeting for tyres, service new windsreens etc - all these take a bashing when you do high mileage.

Prismv

My place of work is classed at home. So I don't drive to the Office everyday.
I go in once and week and have never had a problem claiming that back as biz miles.

I don't do enough private miles to justify the private fuel allowance so I'll be taking the Company car without fuel.

I have had a company car for the last 9 years so for what it's worth I'm going to go with that option.

I don't think I could last an entire year to claim the biz miles back of the government

withabix

Prismv wrote: »

I don't think I could last an entire year to claim the biz miles back of the government

You don't need to.

As long as you can give them some proof of your NORMAL business mileage, HMRC will make an adjustment to your tax code, thus you will get your tax relief back in your pay each month.

You will still have to complete a Tax Return each year, but unless your mileage figures vary a lot, you should either have to pay a small amount of extra tax or get a small rebate - usually any extra to pay will be taken as a tax code ajustment for the following year.

I do it this way and have done for the last six years. HMRC seem quite happy to allow this arrangement.