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Posted Mon, 16 Jan 2023 17:49:49 GMT by Jesse Gilchrist
Hi, I'm trying to work out the best way to set up the use of my personal vehicle for my limited company. I am able to get a fuel card to pay for fuel, but what's the best way to pay for personal miles I do? Can I pay back personal miles at 17p a mile which is the company car rate so it doesn't attract a BIK tax? Also, if the company pay for fuel, and I reimburse personal miles, how do I claim wear and tear, insurance costs etc? Can I pay the 45p a mile rate or is that double dipping? Thanks in advance, Jesse
Posted Thu, 19 Jan 2023 16:40:03 GMT by HMRC Admin 20
Hi Jesse Gilchrist,

If a fuel card is provided, you are taxed on the whole amount charged to the card whether the fuel was for business or private use.
Relief for the costs of business travel is given by mileage allowance relief.
If you opt for the 45per mile option this covers wear and tear, insurance etc.

Thank you.


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