reverse directors loan

**Kenny@MyAccountantFriend** · 13 April 2016, 09:58

Yea there is no issues with this. You simply repay yourself as and when required.

**northernladuk** · 13 April 2016, 10:00

When you say not enough, is this not enough because you've got your tax liabilities stored safely somewhere else, or you literally don't have enough and you'll need to empty the account?

**babybel** · 13 April 2016, 10:00

also business van insurance & a 2nd named driver.

Also, I'm proposing to pay BIK / NI / fuel for a little bit of personal use. Is there any issue with adding my (non business) partner as a 2nd named driver.

**babybel** · 13 April 2016, 10:02

The former.

There's enough save for liabilities as you say.

**northernladuk** · 13 April 2016, 10:03

I'd say first stop is your insurance to see if insuring company vehicles allows personal drivers. Might have to shop around.

The fact it's parked at your address at night means it has duality of purpose so you'd always be paying BiK on it regardless of who else is insured wouldn't you?

**babybel** · 13 April 2016, 10:33

thanks.

So I've done a very basic go compare style insurance check. I need to pick up the phone, when I'm not pretending to work. It IS an option to have a named driver.

I guess my questions are more HMRC based. I don't always have the right words.
Does having a named driver who has nothing to do with the business invalidate it being a company van in any way or is the named driver just covered under the flip side (the personal use / BIK side of having the van)?& is there any issue with loaning the co. money? I can't see why, I'm not trying to put one over anyone here, just avoid giving company money away to a 3rd party in interest.

**ContrataxLtd** · 13 April 2016, 10:35

Originally posted by northernladuk View Post

I'd say first stop is your insurance to see if insuring company vehicles allows personal drivers. Might have to shop around.

The fact it's parked at your address at night means it has duality of purpose so you'd always be paying BiK on it regardless of who else is insured wouldn't you?

Company Vans are taxed differently to company cars, they are allowed to be taken home in certain circumstances without giving rise to a benefit in kind. However, as OP has already said he'd be using it to then a BIK would arise so adding another named driver shouldn't have any impact on this.

Insurance shouldn't be an issue either in my opinion, just take out a policy that covers both OP and the named driver for business & personal use.

**northernladuk** · 13 April 2016, 10:38

You won't be able to claim your insurance costs through the company as it's not wholly and exclusively?

Wouldn't your accountant really the best person to ask, particularly when it's a little more complicated than normal?

If you do find out it would be good if you could come and tell us what you eventually did.

**ContrataxLtd** · 13 April 2016, 10:45

Originally posted by northernladuk View Post

You won't be able to claim your insurance costs through the company as it's not wholly and exclusively?

Wouldn't your accountant really the best person to ask, particularly when it's a little more complicated than normal?

If you do find out it would be good if you could come and tell us what you eventually did.

OP would definitely be best speaking to his accountant to get the ins and outs of this. To specifically cover your insurance point, provided the policy was in the company name and paid from the company account it would be fully allowable as it is in relation to the provision of the company van (assuming this is owned by the company). The insurance is allowed to cover named drivers but this gives rise to a VAN BIK on the employee/director, the policy is still 'wholly and exclusively' for business use.

Martin
Contratax Ltd

reverse directors loan