Now, when your company owns the car, it pays for all the running expenses, however since you are a director of your company, you will be taxed on the Benefit in Kind on your company car. Whereas, when you own the car and use it for business, then you can claim back a mileage expense from your company. This amount is a tax deductible expense to your company and a TAX-FREE receipt in your hands, as long as you are paid the approved mileage rate set by the HM Revenue & Customs.
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