Claiming A Percentage Of Car Tax / Insurance

[Techforcer]

Hi Gents,

About 80% of the mileage done in my car is for work purposes... The car is owned by me, not the business, and I pay myself mileage of 45p/mile.

Could I also claim back 80% of my annual car tax and insurance costs? Is this legit?

Many thanks!

[Clare@InTouch]

No. The 45p a mile is high enough, in HMRC's view, to cover petrol and all running costs.

[northernladuk]

Jesus Christ. Try the search option as detailed in the Welcome sections in the link below. Might save yourself some embarrassment.

http://forums.contractoruk.com/welco...uk-forums.html

https://www.google.co.uk/search?q=co...m=122&ie=UTF-8

or try

http://www.contractoruk.com/expenses/

or even

https://www.google.co.uk/search?q=co...or+company+car

[Techforcer]

No. The 45p a mile is high enough, in HMRC's view, to cover petrol and all running costs.

Well, worth a shot, thanks very much

[Boo]

No. The 45p a mile is high enough, in HMRC's view, to cover petrol and all running costs.

This is true but I buy and pay for RAC membership via MyCo and my accountant has never blinked. My justification is that I wouldn't have it if I didn't need to travel to a contract site as the expanse would not be worth it if it weren't for the potential lost company income ensuing from a breakdown.

Having said that, I don't actually know whether my accountant expenses it or just treats it as a bik

Boo

[malvolio]

This is true but I buy and pay for RAC membership via MyCo and my accountant has never blinked. My justification is that I wouldn't have it if I didn't need to travel to a contract site as the expanse would not be worth it if it weren't for the potential lost company income ensuing from a breakdown.

Having said that, I don't actually know whether my accountant expenses it or just treats it as a bik

Boo

Might be a good idea to find out. After all, why should he care? It's your company, you're the one that goes to jail for evasion and false accounting.

[Clare@InTouch]

This is true but I buy and pay for RAC membership via MyCo and my accountant has never blinked. My justification is that I wouldn't have it if I didn't need to travel to a contract site as the expanse would not be worth it if it weren't for the potential lost company income ensuing from a breakdown.

Having said that, I don't actually know whether my accountant expenses it or just treats it as a bik

Boo

I'd say that should be a benefit in kind as you get personal benefit from it and it's not a necessary cost for the business. Maybe he puts it to your directors' loan account....?

[TheCyclingProgrammer]

This is true but I buy and pay for RAC membership via MyCo and my accountant has never blinked. My justification is that I wouldn't have it if I didn't need to travel to a contract site as the expanse would not be worth it if it weren't for the potential lost company income ensuing from a breakdown.

Having said that, I don't actually know whether my accountant expenses it or just treats it as a bik

Boo

I think a motoring organisation membership could possibly fall under the banner of "club subscriptions". If YourCo pays the supplier directly (whether membership is in your name or YourCo's name), its not taxable but is a BIK subject to Class 1A NIC. If you pay and YourCo reimburses you, it should be put through the payroll as income subject to PAYE.

Other expenses: club subscriptions

You may want to note:

Any suggestion that the cost of membership of a club is deductible as a necessary expense incurred in the performance of the duties of the employment should normally be rejected.

If it was a company owned car and that car was only used for business journeys, then you may have a case but if its for your own personal vehicle then I think you'd struggle to convince an inspector that you didn't receive a personal benefit from the membership.

[Boo]

Might be a good idea to find out. After all, why should he care? It's your company, you're the one that goes to jail for evasion and false accounting.

You don't get sent to gaol for putting RAC membership on the company. If HMRC find out and disagree with _my_ assessment that it is alegitimate expense then they will disallow it.

Boo2

[malvolio]

You don't get sent to gaol for putting RAC membership on the company, <mod snip> If HMRC find out and disagree with _my_ assessment that it is alegitimate expense then they will disallow it.

Boo2

Watch the insults, this is a professional forum.

And knowingly claiming personal expenditure as a business expense is evasion, which is a criminal offence for which the sanctions include a custodial sentence.

So want to try again?