Thanks Steve!
The above posts are right, the mileage is the best way to go definitely for Ltd company, I personally use this method to reclaim the VAT back on fuel (as a percentage of the mileage/fuel reclaimed):
http://www.is4profit.com/business-advic ... overy.html
Rates need updating but good working example.
If you're not Ltd then could be worth looking more closely at it as different rules apply to sole traders. Either way if you're reclaiming any motoring costs you definitely need to keep a mileage log for back up just in case HMRC come a calling.
Thanks,
Craig