Car Club as an alternative to Hire Car - legitimate business expense ?

[Wanderer]

Perhaps less attractive for scummy contractors who pay no NI.

Try here: Days Contract Hire | Salary Sacrifice

or here: https://www.google.co.uk/search?q=sa...ice+car+scheme

then tell us all about it.

That's a good link, thanks and I did some reading about it...

This Days Contract Hire is talking about providing a company car and the employee paying less tax than they would on the equivalent salary. Might be attractive to a scummy contractor who has used up their personal allowance and dividends up to the higher rate.

Any further drawings would be hit by higher rate tax so a low emissions car might make sense. But all the talk about these "low emissions" and "green" vehicles caused me to fall asleep face down on my keyboard. Not really my cup of tea, though I guess some people may find it useful.

Still can't quite work out how these car clubs could do it with zero BIK though - maybe their cars are all very low emissions and exempt from the company car tax?

[Contreras]

Still can't quite work out how these car clubs could do it with zero BIK though - maybe their cars are all very low emissions and exempt from the company car tax?

Is it zero BIK though? I didn't see that part.

Anyway...

A 0% band was introduced from 2010/2011 for company cars propelled solely by electricity. From the same date the flat rate charge on company vans propelled solely by electricity was reduced to nil. It is intended this band and the 5% band will be effective for five years.

Linky here under "P11D 2012 Car Benefits Information".

Good stuff indeed. Still deciding what it will be though... me thinks either an Audi R8 or an Aston Martin DBS.

[escapeUK]

Perhaps less attractive for scummy contractors who pay no NI. :

What? There are stupid contractors who pay NI?

[Contreras]

What? There are stupid contractors who pay NI?

Yes, but FTAOD: I don't.

[Alias]

Thinking about insurance though, do you not have business travel covered in your normal car insurance?

Would/could this not be used when hiring the car?

Not really done the car hire thing before myself but raises the question in my mind, my insurance covers me for any car I drive whether personal or business...

[malvolio]

Thinking about insurance though, do you not have business travel covered in your normal car insurance?

Would/could this not be used when hiring the car?

Not really done the car hire thing before myself but raises the question in my mind, my insurance covers me for any car I drive whether personal or business...

"...that is not loaned to you or supplied under a rental agreement" is what my policy says. I'm guessing yours does too...

[Alias]

Yes, good point Mal

[Wanderer]

Thinking about insurance though, do you not have business travel covered in your normal car insurance?

I'll say it again: Business people hire cars all the time. The car hire insurance that comes with the car covers business use. Stop worrying and get on with your life.

As for "travel insurance" there are some travel policies which will cover "top up" hire car insurance to cover the excess if you hire a car which is worth having if you do a lot of rentals.