How to claim for vehicle and travel expenses when you run a limited company
If you have a limited company there are two ways to work out how much tax relief you can claim on the costs of using a car or other vehicle in your business.
When the company owns the car
The company can purchase the car, and then claim tax relief on the actual costs and running expenses as long as the vehicle is only used for business purposes, otherwise Benefit in Kind (BiK) rules will apply.
When you own the car personally
The second method means you own the car personally, and then charge mileage to your company. This method is generally more tax efficient unless the vehicle has extremely low or zero emissions.
Watch our video for more information about claiming tax relief on the cost of using a vehicle in your limited company, or chat to the team about our online accounting services for limited companies.