Car hire and fuel using business debit card. Tricky situation!!

[ltd haven]

Who rented the car. You or the company ? i.e who's name is on the rental agreement ?

If yours: then you have simply taken a loan for that amount. Repay it or post it to the dca and sort it out later (physically rwpaying or debiting agains future dividends. Don't forget the potential advance corp tax etcbif oustanding for 9 months). This is what was alluded to by tcp.

If the companies: You can always do the above but strictly should not. Though there is an argument you are repaying 100% of the cost so it is outwith the specific regime for company cars. Alternatively charge the costs to the company accounta and simply treat ir as a company car. The net result of this is that the taxable income which you will pay tax via self asessment and the co will pay class 1a ni will lukely be more than the effective tax suffered by repaying feom post tax income.

Your accountants should advise the mwrits and the best way fowards for your specific circumstance- likely the first if divisends etc are being paid

Thanks for your insight in this. The bills are on my name so I will take it as DL

[SeanT]

Just repay it, claim the 45p a mile for the business related journeys, and remove any paperwork from company records, as long as you haven't prepared final accounts - imho of course.

[ASB]

Who rented the car. You or the company ? i.e who's name is on the rental agreement ?

If yours: then you have simply taken a loan for that amount. Repay it or post it to the dca and sort it out later (physically rwpaying or debiting agains future dividends. Don't forget the potential advance corp tax etcbif oustanding for 9 months). This is what was alluded to by tcp.

If the companies: You can always do the above but strictly should not. Though there is an argument you are repaying 100% of the cost so it is outwith the specific regime for company cars. Alternatively charge the costs to the company accounta and simply treat ir as a company car. The net result of this is that the taxable income which you will pay tax via self asessment and the co will pay class 1a ni will lukely be more than the effective tax suffered by repaying feom post tax income.

Your accountants should advise the mwrits and the best way fowards for your specific circumstance- likely the first if divisends etc are being paid

[ltd haven]

I'd suggest getting a decent accountant.

thanks

[ltd haven]

Debit the transactions to the director's loan account and then repay them, either by declaring a dividend and crediting the payment directly to the DLA, or by actually repaying the money to the business account.

Thanks. That will help, will look into doing that!

[ltd haven]

How long did you rent the car for? Just a day for a business trip or for longer?

Its for 3 months actually. As in rented a car on a monthly basis :0

[northernladyuk]

Hey lovely members

I was wondering if you can give some advice!

Basically I used my Ltd company debit card to rent a car and also for the fuel
Since I have learnt my lesson (too late!?) I realise this will come under BIK rather than a business expense. Since the car rental+fuel is a huge expense bill, I was wondering what is the best way to deal with this? I have 2 options that i can think of:

Option 1: 'Reverse expense' the amount to the company account and then show it as an expense.

Option 2: Suck it up and just pay BIK tax

I did some research on HMRC website but there is no clear mention of Car rental expense!?

Many thanks
Clare

How long did you rent the car for? Just a day for a business trip or for longer?

[northernladuk]

I'd suggest getting a decent accountant.

[TheCyclingProgrammer]

Debit the transactions to the director's loan account and then repay them, either by declaring a dividend and crediting the payment directly to the DLA, or by actually repaying the money to the business account.

[ltd haven]

Hey lovely members

I was wondering if you can give some advice!

Basically I used my Ltd company debit card to rent a car and also for the fuel
Since I have learnt my lesson (too late!?) I realise this will come under BIK rather than a business expense. Since the car rental+fuel is a huge expense bill, I was wondering what is the best way to deal with this? I have 2 options that i can think of:

Option 1: 'Reverse expense' the amount to the company account and then show it as an expense.

Option 2: Suck it up and just pay BIK tax

I did some research on HMRC website but there is no clear mention of Car rental expense!?

Many thanks
Clare