Should I be taking my car allowance differently?

Should I be taking my car allowance differently?

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Discussion

aceparts_com

Original Poster:

3,724 posts

242 months

Friday 31st March 2006
quotequote all
We've got a company van which we use exclusively for business and pay for the fuel on our business card. When I have to use my own car for meetings etc I usually pay for the fuel using the card.
Is this OK to do or should I be paying for it myself and claiming it back with mileage allowance at the end of the year? I now also think (having read other threads) that paying for it myself and offsetting it against my tax bill would be a nice way of reducing my tax by a few thousand?

simpo two

85,563 posts

266 months

Monday 3rd April 2006
quotequote all
I'm sure it depends on the exact case, but for me my car is 'private car used for business' and 75% of all my motoring expenses are put through the books. So the more I spend, the more I save

aceparts_com

Original Poster:

3,724 posts

242 months

Monday 3rd April 2006
quotequote all
That must be it then. Maybe i'll do some donuts tomorrow

It's usually quicker and easier to ask here than contact my accountant.

Jaglover

42,462 posts

236 months

Wednesday 5th April 2006
quotequote all
If you are using a private car for business then you can claim the IR agreed mileage rates from the company (40P a mile for the first 10,000 business miles I think)

deva link

26,934 posts

246 months

Wednesday 5th April 2006
quotequote all
Jaglover said:
If you are using a private car for business then you can claim the IR agreed mileage rates from the company (40P a mile for the first 10,000 business miles I think)

You can claim anything you like (subject to the company agreeing to pay, of course). However only the first 40p (for 10K miles) is tax free.