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

[nelly76]

Hi all,

I currently am caught by the 24 month rule and will be for the foreseeable future. I cover in about 30-35k per year commuting. My other half does not drive and I need to be able to have a vehicle to drive the family around.

Looking round various forums / HMRC /accountants advice etc I have come up with the following:

1. Keep my current family car and buy a small van. I would pay no BIK on the van as I would keep the family car. This would enable me to claim full costs of the van including VAT and any mileage through the business.

2. Get rid of the family car and buy a pickup. I would pay the van and fuel BIK. This would enable me to claim full costs of the van and any mileage through the business. Also the question of VAT, I think claiming this is probably not advised due to me actually not needing a pickup for work purposes. A small van/estate car is sufficient. I feel this option has a bit less clarity than option 1 and do not feel quite so comfortable with it.

3. Forget the lot and just keep watching my money feed HMRC.

Any thoughts / advice much appreciated.

Thanks.

[northernladuk]

How would buying a van allow you to claim mileage? You are still commuting to your place of work whatever you drive aren't you?

What about a new gig? After two years you are entering part and parcel territory unless you really know your IR35 so might be dodging a bullet by moving on?

[Fred Bloggs]

I think you are basically stuffed by the 24 month rule. If expenses are important to you, find another gig in a different location.

[nelly76]

How would buying a van allow you to claim mileage? You are still commuting to your place of work whatever you drive aren't you?

What about a new gig? After two years you are entering part and parcel territory unless you really know your IR35 so might be dodging a bullet by moving on?

I meant claiming fuel costs directly as opposed to mileage. But I am guessing this may also be a grey area...

[nelly76]

My accountant did not seem to think there was an issue with buying a van and claiming all costs including fuel directly. Another gig could be an option, its just that my current one is in an ideal location for me and an exceptionally good daily rate.

[missinggreenfields]

my current one is in an ideal location for me

You spend £30-35k a year commuting and you class this as an ideal location?

I'd hate to know what a crap location means for you!

[northernladuk]

My accountant did not seem to think there was an issue with buying a van and claiming all costs including fuel directly. Another gig could be an option, its just that my current one is in an ideal location for me and an exceptionally good daily rate.

Well in all my time I've not see this mentioned in any of the 24 month rule guides. If this was true I can't help thinking it would be standard advice on every 24 month rule/expenses thread... Which is most certainly isn't.

I don't know the answer but based on that alone I'd be going back to my accountant to get them to prove this to me.

[WTFH]

You spend £30-35k a year commuting and you class this as an ideal location?

I'd hate to know what a crap location means for you!

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

[Darren at Fox-Bartfield]

My accountant did not seem to think there was an issue with buying a van and claiming all costs including fuel directly. Another gig could be an option, its just that my current one is in an ideal location for me and an exceptionally good daily rate.

Just because you're changing the mode of transport doesn't mean you get around the expenses. The rule is regarding travel expenses no matter if you use car, van, bus, segway, scooter, etc, etc.

It would be possible for the costs themselves to be put through and the company offset those against the profits however the mileage claim between you and the company is definitely not a good idea. Kind of a half way house with the company obtaining tax relief but you'd need to sit down with the numbers to work out how beneficial, if at all to do so, appraise the numbers in detail.

[northernladuk]

No, just because you're changing the mode of transport doesn't mean you get around it. The rule is regarding travel expenses no matter if you use car, van, bus, segway, scooter, etc, etc. Is your accountant a contractor specialist?

Now waits for NLUK to weigh in

Not this one lol. I've said that before in questions like this and been advised that any accountant should be able to cover the basics of the 24 month rule and company cars/vans. It's not just a contractor centric question this one I believe.