Fuel efficient cars for contractors

As a contractor who operates through a limited company and who uses your own vehicle to travel to your clients’ office, you should be used to claiming for mileage expenses.

With the fluctuating fuel costs, you may have noticed that your fuel bills have been steadily increasing. If you are looking to spend less on fuel each month and are conscious of the impact your journeys have on the environment, we’ve put together a list of some the most fuel-efficient cars for contractors:

Peugeot 208

The Peugeot 208 is essentially an updated version of the 207 model. However, Peugeot has managed to reduce its weight by more than 100kg’s which makes this car one of their most economical models. According to reviews, the 1.6 litre diesel model can run at 94.2mpg.

This small sporty car is perfect if you do a lot of town driving and its size makes it easy to fit into small parking spaces.

Renault Clio

First launched in 1990, the Renault Clio has been a stable on our roads for over 25 years. Classed as a supermini car, the newest model is described as a stylish and small practical car.

The Renault Clio’s official fuel economy figure is 88.3mpg, and it also has an impressive 83g/km of CO2. For a small car it has a decent boot space, great for those contractors who need a bigger space for their specialised equipment.

SEAT Toledo

The SEAT Toledo is one of the biggest cars on our list (its boot space is around 500 litres), yet it still is one of the cheapest to run and the 1.4 litre diesel model gives an impressive fuel economy figure of 83.1mpg

A new model will cost you from £17,000 – £20,000 depending on the engine size. You can pick up a two-year model for around £12,000.

Fiat 500

The Fiat 500 is the smallest car on our list, measuring only 3.5 metres in length. This puts it in the category of city-car, meaning it is perfect for nipping around busy roads. However, this means it is very limited on internal space, with the boot space only offering 182 litres.

If you want a small stylish car for short journeys, the Fiat 500 is perfect. Plus, it’s extremely cost effective to run, offering 83.1mpg.

Ready to embrace the future of driving?

If you’re considering going fuel-free altogether, here are some of the top-rated electric cars: Nissan Leaf, Volkswagen e-Golf and the Tesla Model S.

Another benefit of purchasing a plug-in vehicle is that they benefit from government grants and incentive schemes, which helps to reduce the cost of owning an electric vehicle.

Recap of how to work out mileage expenses

HMRC have a simplified scheme for claiming mileage expenses for journeys made by car, van or motorcycle. Up to 10,000 miles travelled in a tax year, the rate of 45p per mile can be applied, distances after this are calculated at a rate of 25p per mile.

For further information on allowable business expenses and how to claim for expenses, give us a call on 01962 867550 or send us a message via our website.