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3 day car hire confusion

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    #21
    Whether you are considered for paying BIK tax on a company car (and a car hired by the company is a 'company car') is about whether the car was AVAILABLE for personal use, irrespective of whether you use it or not. You'd struggle to convince Her Majesty's Robbing C... that it was a pool car if you are a one person limited company and it was parked on your drive all weekend whilst your own private car was in the garage for repairs.

    As an example, if I had a company car available for private use, I pay BIK for all 365 days of the year, not just for the days I actually use it.

    The magical words are "wholly and exclusively".
    Taking a break from contracting

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      #22
      Originally posted by chopper View Post
      Whether you are considered for paying BIK tax on a company car (and a car hired by the company is a 'company car') is about whether the car was AVAILABLE for personal use, irrespective of whether you use it or not. You'd struggle to convince Her Majesty's Robbing C... that it was a pool car if you are a one person limited company and it was parked on your drive all weekend whilst your own private car was in the garage for repairs.

      As an example, if I had a company car available for private use, I pay BIK for all 365 days of the year, not just for the days I actually use it.

      The magical words are "wholly and exclusively".
      Rather than making stuff up have a read of the rules. Its perfectly acceptable to have it on your drive "if needed for an early morning start". Incidental private use like dropping in for a newspaper on the way to work is also ignored.

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        #23
        Originally posted by CoolCat View Post
        Rather than making stuff up have a read of the rules. Its perfectly acceptable to have it on your drive "if needed for an early morning start". Incidental private use like dropping in for a newspaper on the way to work is also ignored.
        All I can find around the 'available' is for company cars, not expensed hire cars so guess it's up to the OP.

        One think I'm not sure has been mentioned is insurance. If you expect your business to pay for it as an expense and you are travelling on business to your clients you are going to want to mention this to them. Their normal insurance won't cover you as you are clearly not commuting. Not sure if they do the business class 1 thing but bearing in mind you could be classed as using it to carry out your trade (as there is no social use) you would probably need full business insurance.

        Putting it through the company and then only taking out social/domestic/commuting means there is no way HMRC is going to accept the expense.
        Last edited by northernladuk; 10 January 2017, 17:42.
        'CUK forum personality of 2011 - Winner - Yes really!!!!

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          #24
          Originally posted by northernladuk View Post
          All I can find around the 'available' is for company cars, not expensed hire cars so guess it's up to the OP.

          One think I'm not sure has been mentioned is insurance. If you expect your business to pay for it as an expense and you are travelling on business to your clients you are going to want to mention this to them. Their normal insurance won't cover you as you are clearly not commuting. Not sure if they do the business class 1 thing but bearing in mind you could be classed as using it to carry out your trade (as there is no social use) you would probably need full business insurance.

          Putting it through the company and then only taking out social/domestic/commuting means there is no way HMRC is going to accept the expense.
          I had a hire car when some bint went into the back of mine. The hire car company can cover you for business travel you just need to tell them what the car is for. Also when workers hire cars to go to another site they also have to be insured for business use as it's not normal commuting.
          "You’re just a bad memory who doesn’t know when to go away" JR

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            #25
            Hire car can normally be insured "for anything legal", so not drug dealing but any legitimate business use is fine.

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