Reply to: Company Car Q's

[kermitt]

So basically get another gig for when I know I am gonna go over 24 months.

[northernladuk]

Unfotunately not quite right in these circumstances. You can continue to claim expenses if you have been on client site for a maximum of 40% of the time over the last 2 years. As the OP has been onsite for 100% of the time for 12 months (an assumption I admit...) and then was onsite for 40% of their time over the next 12 months then they would still have been on client site for 70% of their time on average over 24 months and so the 24 month role would apply.

and... as I believe it.... even if you work it out as 39% this may not gaurantee you will pass. Think about what this is trying to achieve and clamp down on. To pass a figure that is deemed reasonable does not mean you are in the clear. I would expect they would still be quite happy to investigate and arrive at the conclusion you are trying to avoid this situation rather than actually complying with the reason it exists.

[lje]

If you can keep the client down to only being onsite 2 days a week then the 24 month rule does not apply.

Unfotunately not quite right in these circumstances. You can continue to claim expenses if you have been on client site for a maximum of 40% of the time over the last 2 years. As the OP has been onsite for 100% of the time for 12 months (an assumption I admit...) and then was onsite for 40% of their time over the next 12 months then they would still have been on client site for 70% of their time on average over 24 months and so the 24 month role would apply.

[blacjac]

If you can keep the client down to only being onsite 2 days a week then the 24 month rule does not apply.

[Fred Bloggs]

Could be worth considering a "Qualec" vehicle?

HMRC QUALEC Info.

See example 5.

[kermitt]

I own 3 vehicles personally, one is my daily, one is for the girlfriend, and the other for track days (but usually in bits lol).
I have used my car for the last 12 months and claiming 40p/25p as allowed and done about 18k miles in that time.
I was renting a flat close to my temp workplace just for ease of commute but have since packed that in due to the costs involved. My plan now is just to drive as and when I needed to maybe 2 to 3 times a week and then return home but that would be impractical at the mo running a 3.0 petrol engine on a 200+ mile return journey.

Hence the thought get a cheap diesel personally to run instead but I may fall foul of the 24 month rule, so I thought about putting it through the company instead but as I said there is no point if I was getting taxed upon the list price.

As a result it would be better to trade mine in and just get a newish company car instead. That way I don't fall foul of the 24 month rule and don't have to worry about the running costs personally and I would still be saving money for a house deposit.

[ASB]

Hence my original question thinking that I could buy a cheap 5-10 year old diesel for a couple of grand and run it into the ground but my Ltd picks up the tab for the bills. However there is no point if I would get taxed on the basis that it cost £20k+ when new.

But it personally. Check carefully about the rules being per car. Can you run it overall for less that 40p mile over 10k or an average of 32.5p over 20k. You should be able to.

BTW. No BIK on company vehicles if no private mileage. Getting HMRC to accept that is next to impossible though.

[kermitt]

Thanks, just to clarify what I meant by rollin; I had my renewal at the end of Feb for another 12 months but I need to chase the agency for the correct paperwork i.e. up to date contract.

[northernladuk]

Thanks, have already been through the helpsheet though and well it didn't help.

At the moment I have completed a 12 month gig and and now on a rolling contract (although need to tidy this up with the agent) and am happy with the work.
But I have a 2 hour drive to/from work which although I don't mind I am aware that if I break the 24 month rule then I lose the ability to claim for travel expenses which is alot of £ every month.

Therefore I have two options; either change/get another client far enough away that the 24 mth rule renews itself or get a company car.

Trouble is I like my powerful cars and don't like the idea of being restricted in choice or having to spend loads on a newish diesel car that I don't want anyway.

Hence my original question thinking that I could buy a cheap 5-10 year old diesel for a couple of grand and run it into the ground but my Ltd picks up the tab for the bills. However there is no point if I would get taxed on the basis that it cost £20k+ when new.

Just my two thoughts when I read this. Isn't having a rolling contract mean that you have already broken the two year rule. By having no end date means you fully expect to be htere in 12 months therefore you should have stopped claiming the day you found this out? When you say rolling you mean, extention every three months or something. The fact you used rolling would suggest that even if the paperwork says renewal every x months you yourself know you will be there in 12 months there for rule broken? Just out of interest as well but wouldn't a rolling contract generally suggest IR35 issues.. and I mean real working practices here not contract wording?

I also just can't believe that you can do your second idea. If this was the case it would be a no brainer and we would all be doing it. The fact I think no one has a company car here suggests something different. I have asked my accountant about this as well so waiting for a response.

[kermitt]

Thanks, have already been through the helpsheet though and well it didn't help.

At the moment I have completed a 12 month gig and and now on a rolling contract (although need to tidy this up with the agent) and am happy with the work.
But I have a 2 hour drive to/from work which although I don't mind I am aware that if I break the 24 month rule then I lose the ability to claim for travel expenses which is alot of £ every month.

Therefore I have two options; either change/get another client far enough away that the 24 mth rule renews itself or get a company car.

Trouble is I like my powerful cars and don't like the idea of being restricted in choice or having to spend loads on a newish diesel car that I don't want anyway.

Hence my original question thinking that I could buy a cheap 5-10 year old diesel for a couple of grand and run it into the ground but my Ltd picks up the tab for the bills. However there is no point if I would get taxed on the basis that it cost £20k+ when new.

[NotAllThere]

Mods!

How did you miss Zis?

Miss what - or am I being fick? Anyway moved to correct forum.

[Lester]

1) If you buy a 2nd hand car is the P11D value still based upon the new list price for the vehicle in question or is it calculated on the sticker price on the car at the time of buying?

Straight from Hector's mouth: http://www.hmrc.gov.uk/helpsheets/hs203.pdf

It's based on the list price when it was new, unless it's more than 15 years old and worth more than it was new and worth more than £15,000.

[Spacecadet]

is there a mileage limit where having a company car becomes more economical?
I've done over 20,000 miles for business this year, so over half the miles have been claimed at the lower rate
Wife and I have 2 cars between us, if we sold one and I bought a company car instead then that new car is only ever going to be used for work and not private use.

[Hiram King Of Tyre]

How does having a company bike stack up then?
details pretty please

http://forums.contractoruk.com/accou...otorcycle.html

[stingman123]

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How did you miss Zis?