Car rental and expenses

[northernladuk]

Plenty of threads to browse here.
https://www.google.co.uk/search?clie...k1.23kiWNCzxVY

[malvolio]

Hi all

I have a limited company, contracting outside IR35.

I am waiting for a new lease car which is going to take about 12 weeks for delivery.

I want to hire a small car for a few months until I take delivery and will need this to go to my client.

My question is-

1. Am I able to expense the lease car / claim VAT
2. Can I expense the cost of the hire car (as well as fuel) for three months? It will not be anything flash.

Many thanks

Yes, as long as you don't use it for any personal travel and keep it at your place of work rather than at your home, meaning you will need something else to get you there and back...

Strictly speaking, those are the rules to avoid a BIK. Make of them what you will. But always remember the "wholly and exclusively" qualification for any business expense and YourCo is not a magic money tree..

Come to that it's a lot cheaper and a lot more efficient to buy/lease/rent your own car and charge YourCo mileage at 45p a mile.

[northernladuk]

Hire car is available for you to use personally so it's not wholly and exclusively. Just sitting on your drive makes it available which is enough.

Decent article here
http://www.contractoruk.com/expenses...ire_costs.html

[Medcont]

Hi all

I have a limited company, contracting outside IR35.

I am waiting for a new lease car which is going to take about 12 weeks for delivery.

I want to hire a small car for a few months until I take delivery and will need this to go to my client.

My question is-

1. Am I able to expense the lease car / claim VAT
2. Can I expense the cost of the hire car (as well as fuel) for three months? It will not be anything flash.

Many thanks