Car owned by my company

[Snarf]

Afternoon all, bit of a weird one so Im putting it in general.

Ive been given an opportunity to buy a bit of a novelty car (Its been done up to look exactly like a car from a movie) and Im thinking about diversifying the business*
What Im thinking of doing is buying it, garaging it and renting it out for shows, summer fares etc (not private hire - I know theres alot to consider there).

My question(s) :
1. My LTD is going to buy it and will be on the log book - it will be garaged when not in use and not used for personal use AT ALL - does anyone know of any reasonable insurance that would cover it being driven by any employee of my company (bearing in mind it might only leave the garage 3-4 times a year and do 100 miles a year) - Direct line quoted £1000 which is 3 times more than my daily driver costs me and its brand new!

2. Are there any legal pitfalls/issues that anyone can think of (other than obviously needing insurance) - Im thinking along the lines of will this affect the FRS that Im on - would it be better to start another company? (Its only likely to bring in tiny amounts of money so it seems a bit daft to set up another company and file two sets of accounts/pay the accountant even more...)

Thoughts welcomed.




* The wife works part time and could keep this part of it ticking over while I carry on with the contract software development.

[stek]

Afternoon all, bit of a weird one so Im putting it in general.

Ive been given an opportunity to buy a bit of a novelty car (Its been done up to look exactly like a car from a movie) and Im thinking about diversifying the business*
What Im thinking of doing is buying it, garaging it and renting it out for shows, summer fares etc (not private hire - I know theres alot to consider there).

My question(s) :
1. My LTD is going to buy it and will be on the log book - it will be garaged when not in use and not used for personal use AT ALL - does anyone know of any reasonable insurance that would cover it being driven by any employee of my company (bearing in mind it might only leave the garage 3-4 times a year and do 100 miles a year) - Direct line quoted £1000 which is 3 times more than my daily driver costs me and its brand new!

2. Are there any legal pitfalls/issues that anyone can think of (other than obviously needing insurance) - Im thinking along the lines of will this affect the FRS that Im on - would it be better to start another company? (Its only likely to bring in tiny amounts of money so it seems a bit daft to set up another company and file two sets of accounts/pay the accountant even more...)

Thoughts welcomed.




* The wife works part time and could keep this part of it ticking over while I carry on with the contract software development.

Do it personally and run it as a sideline, really, this is going to a accounting nightmare and a shhit magnet to the HMRC....

[northernladuk]

It costs you more as your current motor is off the shelf and replacement costs are easily identifiable. With a custom car they are taking a risk on the replacement costs and know nothing about the car so can't judge the risk of it breaking down and causing an accident etc. That's why modifications to standard cars such as custom wheels push the cost through the roof. Too many unknowns for their risk tools to handle so they aim high to be covered.

[northernladuk]

Do it personally and run it as a sideline, really, this is going to a accounting nightmare and a shhit magnet to the HMRC....

WHS

[Snarf]

Can't find an insurance company that will touch it unless it's a business policy - because its going to be rented for events!

Out of interest, what kind off issues would we have with the accounting? (My thinking here is that's the accountants issue anyway!)

Ps, thanks for the advice!

NLUK- hadn't thought of the insurance like that... It is kind of one of a kind!
Another option might be to declare it off road and buy a trailer to move it from event to event... wouldn't need to drive it on public roads at all then!

[DaveB]

Are you going to get into character as well?

[Snarf]

Are you going to get into character as well?

haha, how did you know

[56samba]

They used to leave that thing in the BBC car park in Ariel Way, many years ago, when I contracted there..

You want a specialist insurer, like maybe RH, or Footman James.

If its a 'classic car' then special rules apply tax wise.

Very annoyingly Classic Motorcycles do not have these special rules applying.

[LondonManc]

The wonderful words "Engineer's Report" spring to mind from long long ago and far far away quite close really, just down the road, cost about £30 uninflated 1985 £ as I recall.

£49.99 at Toshe Station.

[sal]

If it's not going to be driven on public roads you might be on the right track with the idea of a trailer.