I recently changed from having a company car to having a private car allowance. This allowed me to buy my own car and use it for company business, and claim back my business mileage. A couple of people have mentioned to me that I can also claim back tax because I am using my own car. Is this true? Does anyone know how this works?
Yes you are allowed to claim back Tax from a private car used for your business use but I got an accountant to sort all my figures out for me....either try the citizens advice http://www.nacab.org.uk/
or your own accountant (or your firms should be able to explain) or if you really fancy wading through the minefield try the governments site for all car & tax related issues here Good target=_blank>http://www.inlandrevenue.gov.uk/cars/index.htm
I would suggest it depends on how you are compensated for business mileage. If your employer is paying an amount which is intended to compensate for "fixed" costs (ie not just fuel) then I think it may be difficult to obtain tax relief for these same costs. I suspect that if your car allowance is designated as this, then you could have problems. However do have a go and good luck.