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Fuel Card / Tax Relief

Raymaan
Raymaan Posts: 7 Forumite
edited 20 April 2018 at 6:29AM in Cutting tax
Hi,

I am the director of a family-run private limited company and would like some advise on how to handle the dreadful fuel dilemma.

I use my Company Fuel Card to pay for fuel filled in my Personal Car which I use mostly for work (85% of miles are work-related). A fuel card saves me having to collect receiepts. I do not reclaim VAT on fuel as I'm under Flat Rate VAT Scheme.

Do I need to make a log of each work-related journey to act as proof of the 85% of miles are work-related?
What process/method should I use? Is it to pay the company from my wages (after income-tax) for personal miles? (if so, what rates/calculation do I use)
Am I better off paying for fuel using a personal credit card, collect reciepts, then pay myself through the company the work-fuel portion, and then claim the tax relief on the p11d?

I'm alittle unsure of what the best process/method would be - in the sense that, least admin-work required, and tax :p

Comments

  • gingerdad
    gingerdad Posts: 1,920 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    you would be better claiming mileage at the 45p rate much more straight forward - i'd speak to your accountant and get the best answer
    The futures bright the future is Ginger
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