How to apportion private use of hire car at weekend

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MPwannadecentincome replied

4 June 2014, 21:26
Originally posted by Contreras View Post

If it's wholly for business and you have a mileage log from the hire company then as ASB says I wouldn't worry about it.

One option though is to hire the car privately, pay for the fuel privately, and claim 45p/mile from your company for the business element. Check the sums to see if this makes sense.

For 50 miles a day roundtrip per day I didn't think it would make sense but having calculated again it is around break even with claiming 5/7ths of the rental and the fuel on top (@16 p per mile for a 1.6 engine HM Revenue & Customs: Company cars - advisory fuel rates from 1 June 2014).

Only trouble is I paid for the rental already on the company card, so I could recategorise that as a Directors Loan and repay that back?
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vwdan replied

4 June 2014, 14:37
Originally posted by kal View Post

Think turning up at client co behind the wheel of an old banger may raise a few eyebrows

Not that it's necessarily a great idea, but why should the client care? My current car is 10 years old, as was my last one.

I have better (and faster) toys to spend my earnings on.
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kal replied

4 June 2014, 14:34
Originally posted by kookachoo View Post

Surely you could buy an old banger for a couple of hundred quid and it will soon pay for itself when claiming £0.45 per mile!

Think turning up at client co behind the wheel of an old banger may raise a few eyebrows

Last edited by kal; 4 June 2014, 14:37.
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kookachoo replied

4 June 2014, 13:26
Surely you could buy an old banger for a couple of hundred quid and it will soon pay for itself when claiming £0.45 per mile!
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VectraMan replied

31 May 2014, 12:36
Forget claiming the hire car through the company and just claim the private mileage allowance. That way you're free to do what you like.
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Contreras replied

31 May 2014, 08:33
Originally posted by MPwannadecentincome View Post

I don't intend to use the car at the weekend but I have read that having it available for personal use means it is a BIK.

Rather than pay the BIK I would rather re-imburse the Ltd Co, so how do I apportion the cost of personal vs business use?

Should I just use the car at the weekend anyway and apportion by mileage? Or should I average out the daily rental fee?

TIA.

If it's wholly for business and you have a mileage log from the hire company then as ASB says I wouldn't worry about it.

One option though is to hire the car privately, pay for the fuel privately, and claim 45p/mile from your company for the business element. Check the sums to see if this makes sense.
Leave a comment:
ASB replied

31 May 2014, 06:27
I really would not bother. You are collecting at the only possible time due to the hours kept by the supplier.

any personal use is entirely coincidental and minor.
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MPwannadecentincome started a topic How to apportion private use of hire car at weekend

30 May 2014, 21:24
How to apportion private use of hire car at weekend

New gig starts 9am on Monday, to get there on time I have to leave the house at 6:30 am by bus or 7:30am by car, as I don't have a car I have to hire one, but the car rental office opens at 8am.

As local car rental offices are closed on Sunday I have to pick the car up on Saturday.

I don't intend to use the car at the weekend but I have read that having it available for personal use means it is a BIK.

Rather than pay the BIK I would rather re-imburse the Ltd Co, so how do I apportion the cost of personal vs business use?

Should I just use the car at the weekend anyway and apportion by mileage? Or should I average out the daily rental fee?

TIA.
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