car costs - Ltd co.

frost

My wife & I are the only directors of our own Ltd. company, and we have been using our family car for company business quite a lot. Mainly this is trips between home & the farm, but we also go out to collect things for the farm in a trailer.

Ultimately I will ask an accountant, but for now I'd like to get a general sense of the options we have in relation to the car costs.

We are going to trade in the car this month, and will be getting a different one (probably a 4 wheel drive as the business is farm-based), but note that the vehicle will not be new, nor will it be a commercial vehicle (we will also use it as a family car). Also note that company is registered for VAT, there is no payroll as we don't draw a salary (yet), and the company may never turn a significant profit.

Some of our options as I understand it are this:

1. Company buys new car. Car expenses and depreciation appear as expenses in company accounts. BIK comes into play (does this have to be done via PAYE?)

2. Company leases car. I know nothing about this option. I heard that VAT can be reclaimed on a lease, but is that true for a non-commercial vehicle? Also. what are our options when lease runs out?

3. We buy replacement car ourselves and claim mileage from company. My understanding is that we can't claim mileage for trips between home and the farm, but *can* claim for any other driving that is business related. The mileage costs are treated as expenses for Company accounts. I don't believe this has any effect on our personal tax situation. Do we have to keep a mileage logbook? What is the mileage rate we can claim?

...Other options?

About diesel: Our replacement vehicle will probably be a diesel, so which options above would allow us to claim VAT back on diesel?
Also, I know farmers can get agri diesel which is cheaper, but is that only for actual farm vehicles like tractors?

Thanks for any advice/clarification!