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

[seyre1972]

Hi,

I have need for a 2nd car for weekend work on another contract I have. (family need our car @ weekends for swim club/ponies etc)

As it's not every weekend, can be cancelled due to business requirements etc - it doesn't justify purchasing a second car. Location is not well served by Train/Public transport so please rule that out as an option.

I've hired a car a couple of times, and put this through as a legitimate business expense. But as it is an early start on the Saturday, I have to pickup on the Friday evening, return over 24 hrs later. For which Car Hire companies charge the full 2 day rate.

I've found out that I have one of the Car Club vehicles nearby - for which you can book hourly/daily. If I were to sign up/use this as an alternate - do the learned ContractorUK members think this is a legitimate business expense. (as it would save approx £60 per time hired) vs. the Hire Car alternative.

Currently on-site 1 Saturday in 3 weeks - but this will be ramping up to probably 3 out of 4 Saturdays.

I'm also asking my accountant - but wondered if anybody else has used this before, and put it through as a Business expense ? Appreciate any advice/insite people may have.






Regards,



seyre1972

Admin mods - please move to correct forum if needed.

[Craig@Clarity]

Yes there is no reason why this cannot be an allowable business cost and should be viewed as being no different to self-drive hire cars.

Similarly, like self-drive hire cars, as long as the car is specifically for business use and hired for less than 10 days, you can claim the full VAT back on the cost (unless you're on the flat rate VAT scheme).

[seyre1972]

Thanks for the speedy reply

Yes there is no reason why this cannot be an allowable business cost and should be viewed as being no different to self-drive hire cars.

Similarly, like self-drive hire cars, as long as the car is specifically for business use and hired for less than 10 days, you can claim the full VAT back on the cost (unless you're on the flat rate VAT scheme).

Craig - thank you for the speedy reply. I thought it was the case - but better to check .....


Regards,


seyre1972

[Craig@Clarity]

Craig - thank you for the speedy reply. I thought it was the case - but better to check .....


Regards,


seyre1972

My pleasure..anytime

[BusinessAnalyst2012]

You had better check the Insurance that the Car Club offer to ensure you are covered for business travel.

[seyre1972]

Checked insurance - Personal & Business use

You had better check the Insurance that the Car Club offer to ensure you are covered for business travel.

Good point - checked on the companies website and no exclusion for business/commute is stated under the Personal membership.

They do also have a Business plan - but believe this is more in keeping with businesses whom have a greater need during the week for adhoc car usage.


Regards

Seyre1972

[JamJarST]

Good point - checked on the companies website and no exclusion for business/commute is stated under the Personal membership.

They do also have a Business plan - but believe this is more in keeping with businesses whom have a greater need during the week for adhoc car usage.


Regards

Seyre1972

By the strictest definition, this is not a commute though. A commute is from your home to your normal place of work, your client is not your normal place of work. Personally I would look at the Business plan, after all you are using this for business use not personal. To paraphrase NLUK, you need to think like a business.

[moggy]

By the strictest definition, this is not a commute though. A commute is from your home to your normal place of work, your client is not your normal place of work. Personally I would look at the Business plan, after all you are using this for business use not personal. To paraphrase NLUK, you need to think like a business.

Agreed, but if he was allowed to claim the hire car (never needed to myself) then shirley claiming for the use of the car club, which is cheaper, is more than OK?

[JamJarST]

Agreed, but if he was allowed to claim the hire car (never needed to myself) then shirley claiming for the use of the car club, which is cheaper, is more than OK?

It's not the legitimacy of the expense I am talking about but the insurance, he may not be insured if it is personal plan rather than business plan.

[Contreras]

It's not the legitimacy of the expense I am talking about but the insurance, he may not be insured if it is personal plan rather than business plan.

WJJS.

If claiming the expense through the business then to be road legal the insurance must cover for business use.

The same applies if using a private vehicle and claiming the 45p/mile from your 'employer', so you should have this already if using own car on occasion (it doesn't usually cost much extra, if anything).

Now, that would typically also cover you 3rd party for other vehicles under the same terms. So you would be road legal and no worries about being nabbed by the plod but you could be liable to the car hire company for any accident damage.