Reply to: Car Rental

[eek]

Its not any material difference between getting a flight \ train ticket Fri to Mon when you're working away.

I dont think there'd be a problem with HMRC accepting this provided proper records are kept ie mileage and fuel receipts and you've run it past your accountant. And HMRC would only 'know' if they carried out an investigation.

I think there is a difference. A train ticket is a once only, one way journey from A to B. A car can be used to go anywhere at any time...

[BolshieBastard]

OPco is already paying for accommodations near the client/work place. You can probably argue that a car hire mon-fri is a justifiable expense. The problem is that the car hire will be fri-mon effectively for the weekend when OPs is not working. Try explaining this to HMRC when questioned. In which case i don't think you can even offset the cost against CT, yet alone avoiding BIK.

Just because a number of people here say they have similar arrangements doesn't mean it's right.

Its not any material difference between getting a flight \ train ticket Fri to Mon when you're working away.

I dont think there'd be a problem with HMRC accepting this provided proper records are kept ie mileage and fuel receipts and you've run it past your accountant. And HMRC would only 'know' if they carried out an investigation.

[sal]

For the same reason that paying for flights/train/mileage is a valid business expense?

OPco is already paying for accommodations near the client/work place. You can probably argue that a car hire mon-fri is a justifiable expense. The problem is that the car hire will be fri-mon effectively for the weekend when OPs is not working. Try explaining this to HMRC when questioned. In which case i don't think you can even offset the cost against CT, yet alone avoiding BIK.

Just because a number of people here say they have similar arrangements doesn't mean it's right.

[Antman]

Trouble is the duality of purpose. The car will be sat on the drive over the weekend, how to prove that it will only be used for a business expense over that time?

Best hire it personally and claim the mileage.

[Goatfell]

How is hiring a car for the weekend to go back to your family a valid business expense? YourCo is already paying for your accommodation during the week i presume.

For the same reason that paying for flights/train/mileage is a valid business expense?

[sal]

How is hiring a car for the weekend to go back to your family a valid business expense? YourCo is already paying for your accommodation during the week i presume.

[JRCT]

Doesn't it count as a BIK if YouCo gives you a car to jaunt about in at weekends (regardless of whether you actually use if for that, or just for travel from/to site)? I've always been a bit nervous about this so just rented privately and claimed mileage.

I agree. Hiring a car through the company for a week would be the same as buying a company car on Monday and selling it the following Monday. Far more hassle than renting personally and claiming mileage.

EVeryone says that a company car is not a good idea. So surely this can't be for the same reason.

[Scruff]

I have two other cars that I own for weekend use, so don't use the rental if I have it over the weekend, IYKWIM?

[vwdan]

Doesn't it count as a BIK if YouCo gives you a car to jaunt about in at weekends (regardless of whether you actually use if for that, or just for travel from/to site)? I've always been a bit nervous about this so just rented privately and claimed mileage.

Interesting point, actually - I've only rented a couple of vans for one day a go so no drama there but renting a car for a week could be awkward. That said, I've had rented cars through work before now and that was never issue BUT the only time I had a long term rental (I was seconded into a job that needed a company car) but I had to leave it at work overnight and on weekends.

[Batcher]

Not sure where you're based but wouldn't it be possible to fly to Southampton? Rail link is right at the airport if you need it.

[supersteamer]

I just rent the car through MyCo. Put all the petrol, tolls and any associated costs through too. Negates all the claiming back hassle.

Doesn't it count as a BIK if YouCo gives you a car to jaunt about in at weekends (regardless of whether you actually use if for that, or just for travel from/to site)? I've always been a bit nervous about this so just rented privately and claimed mileage.

[AMH]

Maybe not much help - but I would have thought anywhere that rent vans along with Cars would do a business rental?

I used to have short term lease cars via a permmy role I used to do.
Thinking about it, them cars came from Budget, Alamo & Hertz.

[vwdan]

I just rent the car through MyCo. Put all the petrol, tolls and any associated costs through too. Negates all the claiming back hassle.

Same - you get the VAT back if you're not Flat Rate, too which can be a reasonable chunk. Plus, it doesn't count towards your 10,000 miles 45p limit.

[Scruff]

I just rent the car through MyCo. Put all the petrol, tolls and any associated costs through too. Negates all the claiming back hassle.

[psychocandy]

I don't think eek was suggesting you buy a car. More that you rent a car personally and claim the 45p per mile.

EXACTLY. Doesnt matter how you've got the car, whether its your, rented, leased, borrowed, stolen you can claim 45p.

As eek says, might be better rent personally and claim 45p.