Mileage claim versus company car
Those of you who own a company car are becoming amongst the minority as company cars becomes less and less beneficial from a tax perspective.
Soon there will be just a few circumstances where the company car option would be favoured over claiming mileage as tax rates continue to rise. Even the low emission cars that have more recently been promoted as “saving the planet” whilst being tax efficient are seeing fewer tax breaks.
Claim mileage for travel expenses
It depends on the amount of miles you clock up every week. But for those who drive occasionally for business purposes should really look at the mileage option instead.
In a nutshell, you own the car personally and then claim back mileage at 45p per mile for the first 10,000 miles and 25p after. It’s a lot less admin, especially if you are a small business owner and managing your own bookkeeping in house. No receipts, just a mileage log is required.
Rarely does this cover the maintenance costs but forecasts suggest that tax rates on company cars will only continue to rise.
Figurit have a Mileage V Company Car Toolkit to help you estimate which is the best method for you based on your personal circumstances. Contact us and we will run the calcualtions for you FREE of charge.
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