Company Van/Pickup - My first post, be gentle!!!

[missinggreenfields]

I think the OP meant they drive 30-35,000 miles per year.

Oh, OK.

So between £9500 and £10750 on mileage costs. I can see how that would be an ideal location.

[nelly76]

Okay, thanks for your responses.

I am with a well known specialist contractor accountant. I followed up my previous emails to gain 100% clarity and received this response:

"I can confirm 100% that purchasing a company vehicle will not be affected by the 24 month rule, as the vehicle is owned by the company and it accessible by it’s employees (you) in order to travel to the clients sites to carry out the work for the business. All other methods of transport, plus mileage, subsistence and accommodation are no longer claimable if you fall within the 24 month rule.

Providing that the van is only used for business ( so with an incidental amount of usage personally) then you will be able to claim back the full amount in VAT charged within the purchase of the vehicle."

Different people/different interpretations.... why cant these things be clearer????

[WTFH]

Company Van/Pickup - My first post, be gentle!!!

So your accountant is saying you can claim for the van but NOT for the mileage/subsistence/accommodation. Looks like you misunderstood when they told you the first time.

[nelly76]

So your accountant is saying you can claim for the van but NOT for the mileage/subsistence/accommodation. Looks like you misunderstood when they told you the first time.

Mileage, yes I understood. But I believe claiming fuel directly would be okay?

[WTFH]

No. The correct term is "Travel and subsistence" - Travel claimed as expenses from your company, or travel claimed as mileage. It's all travel and all part of the 24 month rule.

[Lance]

Hi all,

I currently am caught by the 24 month rule.....

I would pay no BIK on the van as I would keep the family car.

Also the question of VAT, I think claiming this is probably not advised due to me actually not needing a pickup for work purposes.

Once the 24 month rule bites it's personal mileage so stop thinking of the expenses side. A commercial vehicle, as a company car, can be used for personal use with the BIK capped at £3,150 for the vehicle, and £594 for the fuel. Assuming 40% tax that's £1,497.60 straight to the tax man every year.
You can't claim anything else, and there's no point worrying about whether your miles are business or not, it's all personal.
Forget claiming VAT back as it's used for personal miles (that's what my accountant told me last week).
Given your mileage it makes sense though.

[Lance]

Okay, thanks for your responses.

I am with a well known specialist contractor accountant. I followed up my previous emails to gain 100% clarity and received this response:

"I can confirm 100% that purchasing a company vehicle will not be affected by the 24 month rule, as the vehicle is owned by the company and it accessible by it’s employees (you) in order to travel to the clients sites to carry out the work for the business. All other methods of transport, plus mileage, subsistence and accommodation are no longer claimable if you fall within the 24 month rule.

Providing that the van is only used for business ( so with an incidental amount of usage personally) then you will be able to claim back the full amount in VAT charged within the purchase of the vehicle."

Different people/different interpretations.... why cant these things be clearer????

Sounds like your accountant understands the rules but hasn't listened to what you're doing as my interpretation is that you aren't doing any business miles at all.

[Fred Bloggs]

Sounds like your accountant understands the rules but hasn't listened to what you're doing as my interpretation is that you aren't doing any business miles at all.

Exactly. The OP now has to count his post 24 month trips as normal day to day commuting. Not allowable against tax.

[northernladuk]

I can confirm 100% that purchasing a company vehicle will not be affected by the 24 month rule,

Very poorly worded. They are correct, purchasing a company vehicle has nothing to do with 24 month rule... but that's not what you asked so he's confirmed wrong.

as the vehicle is owned by the company and it accessible by it’s employees (you) in order to travel to the clients sites to carry out the work for the business. All other methods of transport, plus mileage, subsistence and accommodation are no longer claimable if you fall within the 24 month rule.

But it doesn't mention T&S distinctly. It can be used but he doesn't mention claiming. I think it's connected to the comment above which is talking about purchasing the vehicle which has sod all to do with 24 month rule which is correct.

Providing that the van is only used for business ( so with an incidental amount of usage personally) then you will be able to claim back the full amount in VAT charged within the purchase of the vehicle."

Again talking about the purchase but clearly states used for business and small amount of personal. The thing is now you are outside the 24 month rule the commute to work is now personal as it's a permanent place of work.

I think you've either asked completely the wrong question or the accountant has got the wrong end of the stick. Everything he said is about PURCHASING the vehicle. I don't see an answer to T&S and 24 months in that.

Try asking him about what his view on the commute to the office when outside the 24 month rule is and how that affects a company car. Avoid the purchasing point altogether. Sounds like you've fed him an idea which he is answering but not the real situation, which is how to get around the 24 month rule.

Better still... Ring them and have it out over the phone.

[nelly76]

Here is the emails when I asked further questions.

"Yes, claiming fuel is fine, claiming mileage is no longer possible once the company has a vehicle purchase on the accounts. You will also be able to claim and cost in association with running the vehicle, such as repairs, MOT, insurance etc."

"Is claiming fuel still okay, even though the primary use of the van is for commuting? where the travel is to a location where I would fall foul of the 24 month rule."

"That is correct. All running costs associated with the company vehicle, including the costs for fuel, will not be affected by the 24 month rule."

Interesting, also confirmed the above on the phone. Interested to know if any other accountants have this opinion?