Contractor Car Advice

[Qdos Contractor]

There's an article relating to this on ContractorUK here.

[SueEllen]

I expect the client is trying to avoid that scenario.

Older cars don't mean they are unsafe or will break down.

I always think it's interesting that on certain roads the broken down cars are about 3 years old e.g. the age when they should have been serviced but clearly haven't.

Oh and these roads the police frequent so will happily give you a ticket if you have stopped for the wrong reason.

[Danglekt]

an accounting colleague of mine told me years ago. Buy a lower than average mileage, slightly older car, solid, but not flash.
Say...£3k worth.

Use it, get your £.45 a mile - pocket the rather large benefit after the car pays for itself within the year.

Flog the car for not much less than your bought it for before the value drops off a cliff at 100k miles or whatever.

Repeat the cycle.

You don't drive the flashest car, but the tax free income each month is nice.

Not for everyone, but it's what I do.

sitting in the daily traffic jam every day, the fact I'm sat still or crawling along in my 11 year old car rather than sitting still in a brand new car make no difference.

[Fred Bloggs]

Or buy a high mileage well looked after car for peanuts and claim the 45p/mile. Quids in....

I expect the client is trying to avoid that scenario.

[barrydidit]

I also think the OP should have picked a better username before asking that question.

[northernladuk]

I'm guessing there might be a different slant on this? If the client co is leasing the car in order that the contractor can get between various sites without charging mileage, then the contractor needs to ask for the use of a pool car instead. The pool car should be based at the client co office and be left there at night and weekends.

That's what I'm guessing as well but he still ought to be doing everything can to use his own cars. Permies get the use of pool vehicles and claim petrol back. If it's part of his service to travel between sites he should be providing that service.

I bet this is just the tip of the iceberg though.

[b0redom]

Or buy a high mileage well looked after car for peanuts and claim the 45p/mile. Quids in....

[WTFH]

I'm guessing there might be a different slant on this? If the client co is leasing the car in order that the contractor can get between various sites without charging mileage, then the contractor needs to ask for the use of a pool car instead. The pool car should be based at the client co office and be left there at night and weekends.

Good call

[Fred Bloggs]

I'm guessing there might be a different slant on this? If the client co is leasing the car in order that the contractor can get between various sites without charging mileage, then the contractor needs to ask for the use of a pool car instead. The pool car should be based at the client co office and be left there at night and weekends.

[WTFH]

Speak to your accountant - I'd be concerned that the implications of leasing through your client are going to be big.
If it's a case that you can't afford the car you want to buy, then maybe get a cheap runaround until you can afford it.


Put it this way - if the client is paying for the car and your contract is terminated or does not get extended then you are car-less.

[NotAllThere]

You are not self-employed. You are an employee of your own limited company. Company car/lease cars come under different rules from fork-lift trucks or van, as they are seen to be a benefit. Since you will be receiving the benefit personally (you will have to be named), I would think you'll find you need to pay tax accordingly. Ask a specialist accountant.

It seems to me that there is a very high chance that having your client provide you with a car is going to put you firmly inside IR35 - but maybe you are already anyway and are quite happy with that. Ask a specialist lawyer.

[northernladuk]

Your client is going to lease a car for you? And you don't want to look like an employee??

Gotta say, first time we've seen this on here. I so want to ask for more details about how you've got a client to commit to a year+ lease for a car for a temporary resource and what else is really going on at your client... but then I don't think I want to know.

Speak to your accountant. I'd speak to QDOS about the IR35 trouble you are in as well tbh.

[richcat]

I'm self employed as a consultant for a company i shall call Bell. Bell are looking to lease me a car as I am unable to lease it personally and my own LTD company is too young to lease it through. I appreciate this has implications for Bell as I don't want to appear as an employee. In my head if they leased a company van/fork lift that I used it wouldn't be an issue but appreciate it might be different for a car.

Can anyone advise the best way to do this?