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

[northernladuk]

Yep. You are at crossed purposes. He's advising you on buying a vehicle. You are looking at a way around the 24 month rule. Ring him and explain it. You are not claiming fuel, you are claiming Travel and Subsistence for your commute.

[Lance]

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."

And now he is just plain wrong. Claiming fuel (where you pay personally for the fuel and claim as expenses) is not possible for personal mileage. You NEED a fuel card that the company pays for, or the company buys the fuel directly.

And you can claim mileage for business mileage only, but not for the company vehicle, just for your other vehicle.

I don't think your accountant is being very clear. He lacks context for some of the suggestions, and then mixes the context for others.

[eek]

Yep. You are at crossed purposes. He's advising you on buying a vehicle. You are looking at a way around the 24 month rule. Ring him and explain it. You are not claiming fuel, you are claiming Travel and Subsistence for your commute.

Not quite. Before the 24 month rule kicked in the OP was able to pull £9500 from the company to cover his commute costs - he can no longer do that.

One solution to the 24 month rule is to stop using your own vehicle for the commute and use one owned by your company (and taking the income tax hit for the benefit in kind that comes from doing so) so that the company is covering all costs (vehicle purchase, road tax, insurance, servicing and diesel) directly from untaxed company income. As you accountant says the cheapest vehicle (from a personal tax basis) is to use a Van but as he says it's not tax free...

[northernladuk]

Not quite. Before the 24 month rule kicked in the OP was able to pull £9500 from the company to cover his commute costs - he can no longer do that.

One solution to the 24 month rule is to stop using your own vehicle for the commute and use one owned by your company (and taking the income tax hit for the benefit in kind that comes from doing so) so that the company is covering all costs (vehicle purchase, road tax, insurance, servicing and diesel) directly from untaxed company income. As you accountant says the cheapest vehicle (from a personal tax basis) is to use a Van but as he says it's not tax free...

Oh dammit. That's not how the accountants post read to me and didn't see that in any of the 24 month posts but if that is the case I could do with deleting some of my posts to clean the thread up. Unless what you say is possible but highly inefficient.

It's also not going to work in his favour if he buys it and then gets canned anytime soon I wouldn't have thought. Expecting to stay in a gig long enough to warrant buying a company van sounds a bit part and parcel'ish to me to be honest.

I guess the next thing is to get the accountant to run the numbers.

[eek]

Oh dammit. That's not how the accountants post read to me and didn't see that in any of the 24 month posts but if that is the case I could do with deleting some of my posts to clean the thread up. Unless what you say is possible but highly inefficient.

It's also not going to work in his favour if he buys it and then gets canned anytime soon I wouldn't have thought. Expecting to stay in a gig long enough to warrant buying a company van sounds a bit part and parcel'ish to me to be honest.

I guess the next thing is to get the accountant to run the numbers.

I remember it because it was one of the approaches that was suggested when it looked like expenses were to be tulip canned last August...

[northernladuk]

I remember it because it was one of the approaches that was suggested when it looked like expenses were to be tulip canned last August...

Ah OK. I can see it might be worth looking at if it's a permanent solution but to do in the hope you stay at your client for a long period seems odd. It's like planning to put yourself at IR35 risk Hope the OP posts the figures his accountant comes up with.

[nelly76]

Not quite. Before the 24 month rule kicked in the OP was able to pull £9500 from the company to cover his commute costs - he can no longer do that.

One solution to the 24 month rule is to stop using your own vehicle for the commute and use one owned by your company (and taking the income tax hit for the benefit in kind that comes from doing so) so that the company is covering all costs (vehicle purchase, road tax, insurance, servicing and diesel) directly from untaxed company income. As you accountant says the cheapest vehicle (from a personal tax basis) is to use a Van but as he says it's not tax free...

That's more what I was hoping someone would say. As I would also have a separate family car so no van use outside of work, do I need to pay BIK? Accountant says no.

[eek]

That's more what I was hoping someone would say. As I would also have a separate family car so no van use outside of work, do I need to pay BIK? Accountant says no.

As its available to you in the evenings I think the answer is yes, you will.... It depends on you and your accountants attitude to risk though...

Also note I'm not an accountant, just a contractor who reads up on these things...

[northernladuk]

That's more what I was hoping someone would say. As I would also have a separate family car so no van use outside of work, do I need to pay BIK? Accountant says no.

If it's parked at or near your property it's available for personal use so yes. Being available is enough apparently. I also believe the insurance will allow private use so it's going to be very difficult to convince anyone you never use it except for work.

Here is a good Q&A but it's about cars.
http://www.accountingweb.co.uk/any-a...-are-not-a-bik

I thought you were replacing you car for this van. Isn't paying for your own car and then getting taxed on a company van getting a little ridiculous?

[Lance]

As its available to you in the evenings I think the answer is yes, you will.... It depends on you and your accountants attitude to risk though...

Also note I'm not an accountant, just a contractor who reads up on these things...

My accountant was very clear on this. If it's at home then you have personal use. But..... trying not labour the same point again and again............ It's not business miles once the 24 month rule is hit so all his mileage to and from current gig are personal.