Company Van

[chrisl]

If no private use is used for the van i understand this can be claimed as an expenses through a limited company. The van is a second hand one bought outright for £5k.

I am guessing you just claim the actual petrol receipts too through the company?

Also can you claim, MOT, tax, insurance, services costs as expenses?

Cheers

[malvolio]

No, you can get the VAT back. You can also ignore the usual BIK rules for vehicle ownership provided the van is not used for anything other than company business, which does not include using it to get home (or to the pub at lunchtime...).

Mileage costs are intended to cover the total cost of ownership; they don't any more, obviously, but you can't claim the extra. However if it is used wholly and exclusively for company business, I can't see why fuel and servicing costs are not just everyday overheads.

[ASB]

No, you can get the VAT back. You can also ignore the usual BIK rules for vehicle ownership provided the van is not used for anything other than company business, which does not include using it to get home (or to the pub at lunchtime...).

Mileage costs are intended to cover the total cost of ownership; they don't any more, obviously, but you can't claim the extra. However if it is used wholly and exclusively for company business, I can't see why fuel and servicing costs are not just everyday overheads.

Surely as it's company owned the company charges everything, including depreciation at the appropriate capital allowances rates. (i.e. servicing, insurance, maintenance, fuel, road tax).

The employee is then subject to BIK as approriate (nil if no private use or a flat 3k? if there is private use).

If the employee receives fuel for private use then this is also a BIK. However the employee can either fully reimburese the company for private fule used or pay for all fuel and claim business fuel.

[Whether or not there is actually any benefit in the company owning the vehicle is a different thing of course]

[xoggoth]

Agree with ASB. Mileage doesn't come into it, just deduct all costs including depreciation. A company van used to be great until that bastard you know who put the BIK for private use up to £3k + £500 fuel. A quite ridiculous sum, my van didn't even cost that.

PS I think that HMRC generously allow you to use it to take rubbish to the dump about twice a year without incurring the BIK.

PS My van don't like people laughing. He thinks they're laughing at him.

[malvolio]

Didn't say that very well, did I.

What I was struggling to get across is that if it is a proper company wagon, then the company can pay all the costs as normal business expenses. They aren't going anywhere near your personal income, so no BIK is involved. If it is available for personal use, then there is a flat rate BIK payable. And it's different to company car rules, mainly because a van isn't a car. Or something...

Tell you what: I'll stick to IR35 and ICTs....