Is business car insurance taxable as BIK?

[cannon999]

Oh the joys of HMRC lumping multiple things together and then not providing links to the actual detail.

But you've missed 1 obvious flaw in your argument, a limited company is leasing the car so you are not self employed.

After that the devil is in the detail here as there are probably 1000+ pages of HMRC guidance related to this, so go and ask you accountant or go and find the complete guidance and read the appropriate section.

The issue is that I have 2 accountants that do not agree on the matter.. Which is why I want to know what other people have done and whether anyone can provide any useful links to read.

[ladymuck]

The lease agreement asks for a fully comprehensive insurance which is what this is. It's not used exclusively for non-company activities? It's used for both personal and company activities. That's allowed.

It is a vehicle registered to the business. To use this vehicle for going to meetings this vehicle MUST be insured. How can you say that it's not expensable? That's nonsense. Expenses if you're self-employed: Car, van and travel expenses - GOV.UK

Ah so you're self-employed and not operating via a Ltd Co?

Perhaps, as eek infers, you need to look a bit harder for the right manual to get the information your accountant could supply you with.

[ladymuck]

The issue is that I have 2 accountants that do not agree on the matter.. Which is why I want to know what other people have done and whether anyone can provide any useful links to read.

That's a complicated business model that requires two accountants.

What exact question(s) did you ask and what did they reply with? Are you comparing apples and pears, as in you asked accountant 1 a question, didn't like the answer so asked accountant 2 a slightly different one and got a different answer?

[cannon999]

Ah so you're self-employed and not operating via a Ltd Co?

Perhaps, as eek infers, you need to look a bit harder for the right manual to get the information your accountant could supply you with.

I am operating via an Ltd hence I am self-employed.

[eek]

I am operating via an Ltd hence I am self-employed.

No you are not - you are employed, for most definitions of employment, by your Ltd Company.

[cannon999]

No you are not - you are employed, for most definitions of employment, by your Ltd Company.

Employment status: Self-employed and contractor - GOV.UK

You are wrong.

[WTFH]

... I cannot drive the business vehicle without the insurance - it is a requirement of the business lease agreement (and a legal one). So to go to a business meeting - this vehicle has to be insured...

To drive to a business meeting that is not at your regular place of work, or to drive from one business location to another during business hours REQUIRES business insurance, otherwise your insurance is invalid.
SD&P insurance covers personal driving and daily commuting to one single place of work. If you're a contractor, you can't say you have one place of work, so SD&P won't cover you.

You can probably get away with Business Class 1 or 2.

And interestingly, if you search around, some insurers are cheaper if you go for class 2 business, but with low business mileage, than if you just go for personal.

[cannon999]

To drive to a business meeting that is not at your regular place of work, or to drive from one business location to another during business hours REQUIRES business insurance, otherwise your insurance is invalid.
SD&P insurance covers personal driving and daily commuting to one single place of work. If you're a contractor, you can't say you have one place of work, so SD&P won't cover you.

You can probably get away with Business Class 1 or 2.

And interestingly, if you search around, some insurers are cheaper if you go for class 2 business, but with low business mileage, than if you just go for personal.

Not according to my insurer. They specifically said that travel between offices, commuting to work and occasional business use is covered.

[northernladuk]

Not according to my insurer. They specifically said that travel between offices, commuting to work and occasional business use is covered.

But it's a vehicle owned by the company. Are you sure occasional business use for a company vehicle is acceptable? It would be understandable if you use the vehicle for a majority of the time for business, that's why you've got a business vehicle. Doesn't sound right at all that.

[WTFH]

Not according to my insurer. They specifically said that travel between offices, commuting to work and occasional business use is covered.

Who is your insurer, and were you honest on the form as to who was the registered owner of the vehicle?