Reply to: Buying a motorbike through a Ltd Company...

[Lost It]

And to be honest that's why I claim the miles instead. As well as covering it for Business. The mileage costs I claim back more than cover the out of pocket expense of my Jag and my bike,

[northernladuk]

Just throwing a curveball into the mix - I thought just having a vehicle available for poisonal use made it subject to BIK

Correct. If whoever is buying it wants to risk claiming they don't use it for any personal mileage because they have a second bike at home then that's their call. Nothing we can do about it.

[Pip in a Poke]

Just throwing a curveball into the mix - I thought just having a vehicle available for poisonal use made it subject to BIK

[Lost It]

Whether you've business cover or not, it's irrelevant to a Policeman - all they care about is have you cover.

It's your insurance company that is interested in what you were doing when generating a claim, to decide whether they pay out or not. And if you're 0% at fault of the claim then it's of no interest to them why/what. And also totally irrelevant to a 3rd party.

There was a spate of cases where people were using the SD&P/Commuting insured cars to deliver Parcels and Pizza's that kind of thing where I live. Essentially for someone else, who was paying a rate per delivery.

That's classed as "Business use" and if it doesn't say that you can do this on your policy, if the PO is so inclined to ask, your insurance company depending on the answer they give you may be not technically insured. 6 points minimum, a fine and huge policy cost increases for about another 5 years. And they all succumbed to that little detail. Not one of them had informed their insurance companies what they were doing.

It's your money, we are contractors, for what the extra cost is to make sure you have the cover it seems a silly thing to save money on IMHO.

Mr Plod does care. OK there's not many about, but why take that chance?

[Lost It]

Depends.

Depending on if you depend on it.

[TheCyclingProgrammer]

Whether you've business cover or not, it's irrelevant to a Policeman - all they care about is have you cover.

It's your insurance company that is interested in what you were doing when generating a claim, to decide whether they pay out or not. And if you're 0% at fault of the claim then it's of no interest to them why/what. And also totally irrelevant to a 3rd party.

I was going to mention this, as long as you have a paid for policy in place for the vehicle, you should be covered for the legal minimum of third party cover and I don't think insurance companies can legally refuse to pay out on third party claims if you've not complied with a term of your insurance.

However all that means is you can't get done for driving without insurance. It does mean that the insurer can refuse to pay out for first party claims and they may also be able to sue the policy holder to recover third party costs if they are at fault (though this would be unlikely I think if it was just for having the wrong class of cover, but I wouldn't chance it).

[b r]

Whether you've business cover or not, it's irrelevant to a Policeman - all they care about is have you cover.

It's your insurance company that is interested in what you were doing when generating a claim, to decide whether they pay out or not. And if you're 0% at fault of the claim then it's of no interest to them why/what. And also totally irrelevant to a 3rd party.

[Scruff]

It depends on whether you're a Limited company Contractor, whether you use your own private vehicle(s), and what your Insurer says in it's Policy document.

In this case, ask your Insurance Company/Broker. Adding business use will only add about £20 per annum to your annual premiums (this is roughly what mine cost over and above SDP&C. I use A-Plan as my broker).

[SueEllen]

Depends.

LOL

[northernladuk]

Agreed. So business insurance on your vehicle is a must then?

Depends.

[Lost It]

This. That's exactly the point I was making. Then initial post was written permie'esque talking about only needing it when travelling to other business. A contractor generally always travels for business.

Agreed. So business insurance on your vehicle is a must then? It is for me because I move from site to site.

[northernladuk]

SDP&C covers you driving to a "single place of work". It's designed for permies who drive to their office.

This. That's exactly the point I was making. Then initial post was written permie'esque talking about only needing it when travelling to other business. A contractor generally always travels for business.

[Scruff]

SDP&C covers you driving to a "single place of work". It's designed for permies who drive to their office.

[Lost It]

Not even close.

As far as I'm aware:

As far as the law is concerned (and your vehicle insurance company as well) if you use your vehicle, whatever kind, to go from one place of work to another during your normal work period you need business use on your vehicle policy. Specifically if you are ever asked what you are using your vehicle for and you mention honestly that you are going from job to job the nice Police officer only has to call your insurance company and you might have a nice 6 points dent on your licence, a fine and a vehicle seizure to deal with as well as vast increases in your future premiums.

SDP&C doesn't cover you for that. At all. If that isn't clear from what I wrote originally, I'm sorry but as Contractors we should all know the difference between commuting and work related mileage. I made the mistake of presuming this being a contractor forum that the readers would know that.
Ignorance is not an excuse, an increase in premium to add "Business use" is easily cheaper than what driving without the proper cover in place might cost you.

[northernladuk]

Er. Yes. That's what I thought I'd written.

Not even close.