Small Business - Car Options

[groomi]

Hi all,
I run a small business and have up to now always ran my cars privately and claimed petrol expenses as appropriate.

I'm planning on changing my car and my wifes car (who works part-time for the business) later in the year and need to understand the options.

As I understand it these are the options:

1) Buy car privately, claim petrol expenses.
2) Company buys car and pays for petrol, maintennance etc.
3) Company leases car.

What are the implications of the above options? I know there are complicated rules on car-tax but I am not familiar with them at all. Are there any other scenarios I could consider?

Any help appreciated.

[groomi]

Hi Eric. Yes, it's limited and VAT registered. Been trading since 2001.

[groomi]

Thanks very much Eric for such a thorough reply. I shall digest the information carefeully before deciding which route to take.