Running a Vehicle through Company

**Sockpuppet** · 20 August 2007, 08:51

Depends what your business is. If your an IT contractor general consensus is no you cant.

**Ardesco** · 20 August 2007, 08:53

You can, it's just not economically viable

HTH

**monkeyboy** · 20 August 2007, 09:26

My understanding is that if the vehicle is classed as commercial, you can claim vat on purchase running costs.

And just pay 500 benifit in kind for personnel use of vehicle.

This will not work with cars but commercial vehicles are treated differently.

I think the 500 has change in the last buget is that what makes it un economical.

**monkeyboy** · 20 August 2007, 09:33

Quick google and find that the 500 is now 3000 and hence not economical as it will be predominently for private use.

Suppose that was to catch all the people using Double cab pickups as there company car.

**TheFaQQer** · 20 August 2007, 10:41

Originally posted by monkeyboy View Post

Does anyone here run a van through there company. Lease or purchase.

Has anyone had any problems with this from the IR.

Cheers

A bulldozer is the best thing to run through a company - they do far more damage than a mere van can (unless it's been modified like the A-Team).

HTH.

**THEPUMA** · 20 August 2007, 12:01

Although the BIK has increased to £3,000/£3,500, that doesn't necessarily make it uncommercial to run through your company.

I would say that for most circumstances it would be better owned through the company than personally but you need to crunch the numbers.

**Ardesco** · 20 August 2007, 13:04

Originally posted by Ardesco View Post

You can, it's just not economically viable

HTH

Let me rephrase then.

You can, it's just not economically viable in 99% of cases

HTH

**monkeyboy** · 20 August 2007, 13:05

Thanks puma. So what you are saying is that whether the comapany buys a van or not is upto the directors of the comapany and as long as the BIK is payed to IR for private use thats all that should affect the IR

Does it say anywhere about limitations of use. I.e. if the van is used 95% private and 5% business use is this not allowed.

Think I'm going to have to ask my accountants this.

Basically this has come up because I have a hobby/sport that requires a large vehicle. I have a Discovery at the moment and even with roof rack etc is proving too small. I also have a very large caravan so require a vehicle that can tow it. Hence the van idea (people carriers just don't have the towing capacity) and have it as our only vehicle.

Even with 3000 pound BIK it will probably be cheaper to use the van and with fuel added it could well be alot cheaper. as Ithe company can claim the vat back on all fuel, as long as I spend more than 500 pounds a year on fuel it will work out cheaper through the company.

My biggest concern was if the IR had a limitation of the ammount of use of the vehicle ie must be more business uses than private.

Seems like a nice loophole similar to running a company bike as you can still claim the vat back, cars are less effective as the company cannot claim the vat back.

**THEPUMA** · 20 August 2007, 15:32

Originally posted by monkeyboy View Post

Thanks puma. So what you are saying is that whether the comapany buys a van or not is upto the directors of the comapany and as long as the BIK is payed to IR for private use thats all that should affect the IR

Does it say anywhere about limitations of use. I.e. if the van is used 95% private and 5% business use is this not allowed.

Think I'm going to have to ask my accountants this.

Basically this has come up because I have a hobby/sport that requires a large vehicle. I have a Discovery at the moment and even with roof rack etc is proving too small. I also have a very large caravan so require a vehicle that can tow it. Hence the van idea (people carriers just don't have the towing capacity) and have it as our only vehicle.

Even with 3000 pound BIK it will probably be cheaper to use the van and with fuel added it could well be alot cheaper. as Ithe company can claim the vat back on all fuel, as long as I spend more than 500 pounds a year on fuel it will work out cheaper through the company.

My biggest concern was if the IR had a limitation of the ammount of use of the vehicle ie must be more business uses than private.

Seems like a nice loophole similar to running a company bike as you can still claim the vat back, cars are less effective as the company cannot claim the vat back.

No if you pay the tax on the BIK there are no restrictions on private use.

If private use were "incidental", you can get away with no BIK but it doesn't sound like that will be defensible in your case.

Running a Vehicle through Company