Company Car expenses

[Waldorf]

Still not sure about whether its possible to put company car insurance through company as an expense, and not have it treated as a benefit in kind.
Health insurance is treated as a BIK, so maybe car insurance would be too.

This would be the deciding factor in whether buying a car through my company was worthwhile..

You can't put car insurance through if the company does not provide you with a car!

[SueEllen]

You can't put car insurance through if the company does not provide you with a car!

WWS

Plus the business insurance part of car insurance is a very small part of the normal premium. Most people pay £0 for having business used added on to their premium. In fact the most I've heard someone pay is £30.

[Podgy]

You would be hard pressed to convince HMRC that the car is in fact a 'pool car' - it will be the company's only car etc. I would advise against getting a company car if part of the calculation assumes that you can reclaim the VAT.

Generally, VAT may only be reclaimed on a car if it a pool car etc.

Alan

The quote does'nt say anything about being a Pool car? The car was purchased by the business for the business - I use it as Director for Business Consultancy - which is the classification for my business - I've already claimed back the VAT & put in through my accounts that have been submitted?

[Sockpuppet]

The quote does'nt say anything about being a Pool car? The car was purchased by the business for the business - I use it as Director for Business Consultancy - which is the classification for my business - I've already claimed back the VAT & put in through my accounts that have been submitted?

In which case I hope you keep it offsite and have a alternative car for private use. The BIK is payable on the car being "available" for private use. Not actually being used for private use. Also its not just enough to say "i don't allow it to be used for private miles" it has to be unavailable for use.

Hopefully your accountant didn't advise you to do the above.

[Podgy]

In which case I hope you keep it offsite and have a alternative car for private use. The BIK is payable on the car being "available" for private use. Not actually being used for private use. Also its not just enough to say "i don't allow it to be used for private miles" it has to be unavailable for use.

Hopefully your accountant didn't advise you to do the above.

But it has to be maintained? so as Director I have to have access to it to take it for servicing etc? its kept at the company address - same as mine - but I dont use it for private use - I have used it to get to a temporary workplace, interviews, & business meetings.

[northernladuk]

But it has to be maintained? so as Director I have to have access to it to take it for servicing etc? its kept at the company address - same as mine - but I dont use it for private use - I have used it to get to a temporary workplace, interviews, & business meetings.

Sounds to me like you are looking for us to say 'yes it's ok' to your situation rather than you listening to what you are being told.

The fact it is on your drive way means it is 'available'. If you use it or not it doesn't matter. As long as it is 'available' it incurs BIK. SockPuppet gives you the other option, to leave it somewhere that you commute to to pick it up and use it, which even then, I think HMRC will be all over like a rash as that situation is generally ridiculous for our setups.

[Sockpuppet]

Sounds to me like you are looking for us to say 'yes it's ok' to your situation rather than you listening to what you are being told.

The fact it is on your drive way means it is 'available'. If you use it or not it doesn't matter. As long as it is 'available' it incurs BIK. SockPuppet gives you the other option, to leave it somewhere that you commute to to pick it up and use it, which even then, I think HMRC will be all over like a rash as that situation is generally ridiculous for our setups.

What NLUK said.

Its why IR35 gets such a bad press. Its open to interpretation on if you are aren't caught by the rules. The rules on company cars on the other hand are not and its quite clear when you are or aren't caught.

Even if you could account for every mile on the car as business miles through mileage logs (you can can't you?) then I doubt you'd get HMRC to allow this. If I were you I'd discuss with your accountant the options for correcting this mistake.

[Clare@InTouch]

Trying to persuade HMRC that's it's a pool car when you're the only one who uses it and has access to it is going to be exceptionally difficult. Their guidance:

Sections 167 and 168 ITEPA 2003 ensure that no car or van benefit arises on a pooled car or van made available by reason of the employment that, in the relevant tax year, satisfies all the following conditions:

it was made available to, and actually used by, more than one of those employees
it was made available, in the case of each of those employees, by reason of the employee's employment
it was not ordinarily used by one of those employees to the exclusion of the others
in the case of each of those employees, any private use of it made by the employee was merely incidental to the employee's other use of it in that year (see EIM23455), and
it was not normally kept overnight on or in the vicinity of any residential premises where any of the employees was residing, except while being kept overnight on premises occupied by the person making it available to them (see EIM23465).

EIM23450 - Car and van benefit: pooled cars and vans: general