Running a Vehicle through Company

[spirituel]

Does anyone here run a van through there company. Lease or purchase.

Has anyone had any problems with this from the IR.

Cheers

No

[xoggoth]

As stated, stinking Brownstuff has put BIK up to £3000 plus another £500 on fuel if you have any significant personal use. I believe you can still take it and keep it at home and have a couple of minor personal trips without incurring the BIK.

[THEPUMA]

Thanks puma. So what you are saying is that whether the comapany buys a van or not is upto the directors of the comapany and as long as the BIK is payed to IR for private use thats all that should affect the IR

Does it say anywhere about limitations of use. I.e. if the van is used 95% private and 5% business use is this not allowed.

Think I'm going to have to ask my accountants this.

Basically this has come up because I have a hobby/sport that requires a large vehicle. I have a Discovery at the moment and even with roof rack etc is proving too small. I also have a very large caravan so require a vehicle that can tow it. Hence the van idea (people carriers just don't have the towing capacity) and have it as our only vehicle.

Even with 3000 pound BIK it will probably be cheaper to use the van and with fuel added it could well be alot cheaper. as Ithe company can claim the vat back on all fuel, as long as I spend more than 500 pounds a year on fuel it will work out cheaper through the company.

My biggest concern was if the IR had a limitation of the ammount of use of the vehicle ie must be more business uses than private.

Seems like a nice loophole similar to running a company bike as you can still claim the vat back, cars are less effective as the company cannot claim the vat back.

No if you pay the tax on the BIK there are no restrictions on private use.

If private use were "incidental", you can get away with no BIK but it doesn't sound like that will be defensible in your case.

[monkeyboy]

Thanks puma. So what you are saying is that whether the comapany buys a van or not is upto the directors of the comapany and as long as the BIK is payed to IR for private use thats all that should affect the IR

Does it say anywhere about limitations of use. I.e. if the van is used 95% private and 5% business use is this not allowed.

Think I'm going to have to ask my accountants this.

Basically this has come up because I have a hobby/sport that requires a large vehicle. I have a Discovery at the moment and even with roof rack etc is proving too small. I also have a very large caravan so require a vehicle that can tow it. Hence the van idea (people carriers just don't have the towing capacity) and have it as our only vehicle.

Even with 3000 pound BIK it will probably be cheaper to use the van and with fuel added it could well be alot cheaper. as Ithe company can claim the vat back on all fuel, as long as I spend more than 500 pounds a year on fuel it will work out cheaper through the company.

My biggest concern was if the IR had a limitation of the ammount of use of the vehicle ie must be more business uses than private.

Seems like a nice loophole similar to running a company bike as you can still claim the vat back, cars are less effective as the company cannot claim the vat back.

[Ardesco]

You can, it's just not economically viable

HTH

Let me rephrase then.

You can, it's just not economically viable in 99% of cases

HTH

[THEPUMA]

Although the BIK has increased to £3,000/£3,500, that doesn't necessarily make it uncommercial to run through your company.

I would say that for most circumstances it would be better owned through the company than personally but you need to crunch the numbers.

[TheFaQQer]

Does anyone here run a van through there company. Lease or purchase.

Has anyone had any problems with this from the IR.

Cheers

A bulldozer is the best thing to run through a company - they do far more damage than a mere van can (unless it's been modified like the A-Team).

HTH.

[monkeyboy]

Quick google and find that the 500 is now 3000 and hence not economical as it will be predominently for private use.

Suppose that was to catch all the people using Double cab pickups as there company car.

[monkeyboy]

My understanding is that if the vehicle is classed as commercial, you can claim vat on purchase running costs.

And just pay 500 benifit in kind for personnel use of vehicle.

This will not work with cars but commercial vehicles are treated differently.

I think the 500 has change in the last buget is that what makes it un economical.

[Ardesco]

You can, it's just not economically viable

HTH

[Sockpuppet]

Depends what your business is. If your an IT contractor general consensus is no you cant.

[monkeyboy]

Does anyone here run a van through there company. Lease or purchase.

Has anyone had any problems with this from the IR.

Cheers