Before I give someone duff advice in an area that is not my specialist subject can anyone confirm that you cannot claim servicing against your tax bill when using a private car for company use (Opt out of company car scheme).
I'm working on the basis that this is built into the 40p and 25p mileage allowances but thought I ought to check first.
Thanks.
There is (or used to be) an option to use the 40p fixed rate and nothing else, or an actual costs basis. For actual costs you have to keep accurate records and allocate costs such as servicing and insurance on a basis that takes into account the proportion of miles for work versus private use.
If your work paid you less than actual costs you could use the excess as an allowance against your tax bill. If they paid you more you had an additional tax liability.
Neb
As Neb states, there USED to be 2 different methods of claiming and allowance against tax. One was based on mileage and the other on a proportion of the running costs. This is no longer the case. The only method used by the tax man is based on 40p per mile for the first 10k and then 25p per mile for the rest. If your company also contribute petrol to the business use, this needs to be offset against this.
Thanks guys.
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