Claiming A Percentage Of Car Tax / Insurance

[TheCyclingProgrammer]

From the horses mouth:

EIM31335 - Employees using own vehicles for work: mileage allowance relief (MAR): no additional relief available

Travel-related expenses within the scope of mileage allowance payments
MAR is the only relief or deduction available for this kind of expense (EIM31210). Nothing more (such as capital allowances, actual expenditure, insurance, breakdown cover, repairs or loan interest relief) is available, however great the employee’s actual expenditure.

Or how about:

These items are not MAPs and so cannot be exempt from tax under the AMAPs legislation:

anything that is not a payment, e.g. benefits provided, say insurance (the full cost should be reported as a benefit to the employee on form P11D)

http://www.hmrc.gov.uk/manuals/eimanual/EIM31215.htm

Boo - your claim that any personal benefit is incidental is without merit. The fact that you always have access to roadside assistance with your own personal car means it's anything but insignificant. The service being provided is not directly related to your job, unless driving is your job, which it isn't.

You've been pointed to several sources that refute your claim. Genuine business need does not preclude there from being a BIK.

A company could choose to give their employees healthcare cover because it's in their business interest for sick emoloyees to get well as quickly as possible. This is still a benefit.

As I said in my first post, I suspect that YourCo could probably genuinely claim corporation tax relief on the expense, just like most other benefits or remuneration provided to employees. But it still should have been reported on your P11D and it would have attracted NICs.

I'm curious, does your accountant have a view?

[tractor]

..

Hi Gents,

About 80% of the mileage done in my car is for work purposes... The car is owned by me, not the business, and I pay myself mileage of 45p/mile.

Could I also claim back 80% of my annual car tax and insurance costs? Is this legit?

Many thanks!

Something not mentioned in this thread is the statement I emboldened above. If your estimate is true, have you declared that to your insurance co? If not and dependant upon the miles accrued, it is likely that your premium would rocket compared to the average private car user. Any saving you 'may' be able to make on any 'business' element of insurance, were it even to be allowed by HMRC, is likely to be swallowed up entirely.

[TykeMerc]

Something not mentioned in this thread is the statement I emboldened above. If your estimate is true, have you declared that to your insurance co? If not and dependant upon the miles accrued, it is likely that your premium would rocket compared to the average private car user. Any saving you 'may' be able to make on any 'business' element of insurance, were it even to be allowed by HMRC, is likely to be swallowed up entirely.

Not really, Class 1 business use (driving to site and between sites, not carrying goods, parts etc) is extremely cheap, I've had it for years and can't remember the last time I paid more than £10 extra for the year over standard social, domestic and pleasure cover that is an ordinary insurance quote.

[Boo]

From the horses mouth:

EIM31335 - Employees using own vehicles for work: mileage allowance relief (MAR): no additional relief available

Travel-related expenses within the scope of mileage allowance payments
MAR is the only relief or deduction available for this kind of expense (EIM31210). Nothing more (such as capital allowances, actual expenditure, insurance, breakdown cover, repairs or loan interest relief) is available, however great the employee’s actual expenditure.

Good link, but that is not a statement of the law, just HMRC's opinion as to the general case. HMRC are well know for putting forward partial opinions which do not reflect the law, see the business tests for one famous example.

Boo - your claim that any personal benefit is incidental is without merit. The fact that you always have access to roadside assistance with your own personal car means it's anything but insignificant. The service being provided is not directly related to your job, unless driving is your job, which it isn't.

It is not the case that insignificance has anything to do with incidentalness. HMRC's own advide ondetermining whether use is incidental or not specifically states that the proportion of use is not germane, it is the intention which counts.

You've been pointed to several sources that refute your claim. Genuine business need does not preclude there from being a BIK.

There is no BIK if personal use is incidental.

A company could choose to give their employees healthcare cover because it's in their business interest for sick emoloyees to get well as quickly as possible. This is still a benefit.

Because not incidental.

As I said in my first post, I suspect that YourCo could probably genuinely claim corporation tax relief on the expense, just like most other benefits or remuneration provided to employees. But it still should have been reported on your P11D and it would have attracted NICs.

I'm curious, does your accountant have a view?

I will ask him when I do this years accounts in April.

Interesting discussion which I wasn't expecting my throwaway remark to produce

Boo

[Boo]

Something not mentioned in this thread is the statement I emboldened above. If your estimate is true, have you declared that to your insurance co? If not and dependant upon the miles accrued, it is likely that your premium would rocket compared to the average private car user. Any saving you 'may' be able to make on any 'business' element of insurance, were it even to be allowed by HMRC, is likely to be swallowed up entirely.

My car is insured for Businesss Class 1, which includes unlimited business use, yes.

Boo

[northernladuk]

My car is insured for Businesss Class 1, which includes unlimited business use, yes.

Boo

Completely incorrect. I know what you are getting at but what you have put is utter pap.

[kevpuk]

Business Class 1 means that you can use the vehicle in connection with your work, i.e. driving to differing client sites and so on.

Standard SD&P (Social, Domestic & Pleasure) is just that - nothing to do with work at all.....although it used to be the option for most as it included travelling to and from your place of work. It did not cover driving to Head Office, for example, for a meeting....only your single place of work.
Nowadays, insurance companies offer a marginally enhanced (read cash cow) version of SD&P which also includes Commuting - this is still limited to a single place of work, however.

Finally, there is Business Class 3 which permits the use of the vehicle in relation to Sales and additional commercial use. It also covers carrying of light goods...

Here endeth the lesson

[ASB]

Business Class 1 means that you can use the vehicle in connection with your work, i.e. driving to differing client sites and so on.

Generally, but in my experience differing companies do seem to define it differently. Generally the travel "to from single place" is covered (cf sdp and commuting). A couple of cos I have insured with over the years did want a little more to cover site1 - site 2 etc during the day though.

[TheFaQQer]

I will ask him when I do this years accounts in April.

What was the answer?

[CloudWalker]