Own company, company car and BIK tax

[nipersvest]

We have our own business and recently took on the lease of a company car (still have a car of our own too). When I did my research, I was under the impression I'd be taxed via BIK for having the car but could avoid additional BIK for fuel by paying for all the fuel myself and reimbursing business mileage (13p per mile according to the Gov advisory rates I think?)

The majority of the mileage is work-related (all work mileage is recorded on an app), obviously the BIK fuel portion is huge compared to my personal mileage actual fuel cost.

Anyone any experience with this? Our Accountant is telling me I have no choice but to be charged BIK for car and fuel, my research told me different!

In my company that's exactly what we do - the company pays for the fuel via invoice (fuel cards), employees then submit their private mileage number and we deduct the advisory fuel rate x private mileage from their salary payment. This has the effect of company only paying for private fuel so there is no fuel benefit.

We don't make any distinction for a director. So I don't see there being any difference for you.

Also have you considered an electric car? The BIK is so much lower for the car itself and obviously no fuel benefit.

Edit "company only paying for business fuel"
Sorry!