Mileage vs Fuel Receipts

Accounting
1

Hi, I set up a LTD company less than a year ago and I would like some advice on claiming back the tax on fuel.

What would be the most tax efficient way to claim back on fuel using my personal car, would it be either;

a) Purchase fuel on Business Account and let it offset against the profit.
or
b) Purchase fuel using Personal bank account and claim the miles on my Self assessment.

My car is very fuel efficient so I feel I will gain more tax relief on the miles vs the fuel.

Is b the better option and if not would you be able to advise.

Also another bit of information just in case it is of use… I am not a PAYE employee of my company but rather am self employed but pay myself via dividends.

Thanks!

Jason.

2

My choice is Neither a) nor b).
Each month the Ltd co. should pay you 45p per mile for each business mile used that month
Those monthy payments are business motoring expenses by the Ltd company and for you personally those payments are rembursments for using your car for Ltd company business. So you pay all car expenses from personal finances/bank.
PS
You say “I am not a PAYE employee of my company but rather am self employed but pay myself via dividends.” However that does not make sense.
Because working for your Ltd company does not make you self employed, your earnings from your Ltd co. are dividends.
Saying you are self employed implys you have another business separate from your limited company