Reply to: Car Club as an alternative to Hire Car - legitimate business expense ?

[Wanderer]

Thinking about insurance though, do you not have business travel covered in your normal car insurance?

I'll say it again: Business people hire cars all the time. The car hire insurance that comes with the car covers business use. Stop worrying and get on with your life.

As for "travel insurance" there are some travel policies which will cover "top up" hire car insurance to cover the excess if you hire a car which is worth having if you do a lot of rentals.

[Alias]

Yes, good point Mal

[malvolio]

Thinking about insurance though, do you not have business travel covered in your normal car insurance?

Would/could this not be used when hiring the car?

Not really done the car hire thing before myself but raises the question in my mind, my insurance covers me for any car I drive whether personal or business...

"...that is not loaned to you or supplied under a rental agreement" is what my policy says. I'm guessing yours does too...

[Alias]

Thinking about insurance though, do you not have business travel covered in your normal car insurance?

Would/could this not be used when hiring the car?

Not really done the car hire thing before myself but raises the question in my mind, my insurance covers me for any car I drive whether personal or business...

[Contreras]

What? There are stupid contractors who pay NI?

Yes, but FTAOD: I don't.

[escapeUK]

Perhaps less attractive for scummy contractors who pay no NI. :

What? There are stupid contractors who pay NI?

[Contreras]

Still can't quite work out how these car clubs could do it with zero BIK though - maybe their cars are all very low emissions and exempt from the company car tax?

Is it zero BIK though? I didn't see that part.

Anyway...

A 0% band was introduced from 2010/2011 for company cars propelled solely by electricity. From the same date the flat rate charge on company vans propelled solely by electricity was reduced to nil. It is intended this band and the 5% band will be effective for five years.

Linky here under "P11D 2012 Car Benefits Information".

Good stuff indeed. Still deciding what it will be though... me thinks either an Audi R8 or an Aston Martin DBS.

[Wanderer]

Perhaps less attractive for scummy contractors who pay no NI.

Try here: Days Contract Hire | Salary Sacrifice

or here: https://www.google.co.uk/search?q=sa...ice+car+scheme

then tell us all about it.

That's a good link, thanks and I did some reading about it...

This Days Contract Hire is talking about providing a company car and the employee paying less tax than they would on the equivalent salary. Might be attractive to a scummy contractor who has used up their personal allowance and dividends up to the higher rate.

Any further drawings would be hit by higher rate tax so a low emissions car might make sense. But all the talk about these "low emissions" and "green" vehicles caused me to fall asleep face down on my keyboard. Not really my cup of tea, though I guess some people may find it useful.

Still can't quite work out how these car clubs could do it with zero BIK though - maybe their cars are all very low emissions and exempt from the company car tax?

[Contreras]

What's this about getting a zip car via salary sacrifice? Is there some tax break that means I can get a membership paid for by my company with no BIK then?

Dunno. A quick Google suggests there is still a small BiK but way less than the equivalent an employee would have deducted if paid from post-tax income. Perhaps less attractive for scummy contractors who pay no NI.

Try here: Days Contract Hire | Salary Sacrifice

or here: https://www.google.co.uk/search?q=sa...ice+car+scheme

then tell us all about it.

[Wanderer]

A better question, which would be equivalent to your situation, would be: "I would like to use the car to travel from my office to visit clients, will this be covered by the insurance?"

Yes, of course it is covered. Business people rent vehicles all the time. All they care about is that you don't use the vehicle for racing, off-roading or as a taxi.

What's this about getting a zip car via salary sacrifice? Is there some tax break that means I can get a membership paid for by my company with no BIK then? Could be worth considering for those people in the big smoke who are willing to car share.

[BusinessAnalyst2012]

Apologies - when I asked the representative on the phone - I asked about Business & Commuting - a non-contracting freudian slip if you would - Conversation saved on skype should it come to it worst case scenario of having to prove the point .......

This is what Freud has to say on pedants by the way.

The pedant is he who finds it impossible to read criticism of himself without immediately reaching for his pen and replying to the effect that the accusation is a gross insult to his person. He is, in effect, a man unable to laugh at himself."—Sigmund Freud ......

Sounds like some of the people on some of the other threads on contractoruk

I think you might want to clarify that one with the company again. "Business & Commuting" will be heard by a call centre drone as "Commuting". Inspector Knacker may disagree.

A better question, which would be equivalent to your situation, would be: "I would like to use the car to travel from my office to visit clients, will this be covered by the insurance?"

[VectraMan]

I hired a car a couple as a contractor of times (when mine was off the road), but just claimed the normal private mileage. As far as I can see it's none of HMRC's business what car I use to do the mileage, as long as I genuinely am doing the mileage.

I don't see why this would be different.

[seyre1972]

For the pedants .....

A good point very well made. You only commute to your permanent place of work. You contract is your temporary place of work, the reason you can actually claim this. This means you are using it for business not commuting. If you were commuting you couldn't claim it anyway.

A pedantic point but a very valid one indeed.

Apologies - when I asked the representative on the phone - I asked about Business & Commuting - a non-contracting freudian slip if you would - Conversation saved on skype should it come to it worst case scenario of having to prove the point .......

This is what Freud has to say on pedants by the way.

The pedant is he who finds it impossible to read criticism of himself without immediately reaching for his pen and replying to the effect that the accusation is a gross insult to his person. He is, in effect, a man unable to laugh at himself."—Sigmund Freud ......

Sounds like some of the people on some of the other threads on contractoruk

[northernladuk]

Sorry to be pedantic here, but I don't think this qualifies as "commuting".

A good point very well made. You only commute to your permanent place of work. You contract is your temporary place of work, the reason you can actually claim this. This means you are using it for business not commuting. If you were commuting you couldn't claim it anyway.

A pedantic point but a very valid one indeed.

[JamJarST]

All - called the Car Club helpline - and asked re whether the personal membership covered commuting.

They confirmed that as long as I was not using the vehicle for profit (Taxi) their policy covered it.

The Business option they offer is aimed at an Office/Business having a membership, and pre-approved set of drivers for 1 x fee, rather than several individual memberships.

Thank you for the questions posed - as better to have checked, than find out not covered etc.


Regards,


seyre1972

Sorry to be pedantic here, but I don't think this qualifies as "commuting".