Company pool car expenses.........
past senario was that our Director had his private car included on company fleet insurance (benefit included in p11d ok). This estate car was then available for all employees to use for site visits etc (when not requiring large equipment) which meant that the company vans were left to be used for major jobs. All business mileage was documented & tracked and reimbursed at the applicable rate (currently 45p/mile).
As this car is now 7 years old he has been looking to replace it. He plans to sell this to the company at a proven used car value, and use the funds as a deposit to take on a privately leased new purchase. If all is documented properly I don't see a problem with him making a private sale to the company, unless you may think differently?
My major concern is that HMRC take a dim view on "pool" cars. This estate car will not be used for any private mileage and will be parked overnight within the compound used for our vans - all mileage will be documented, journey start & end readings etc. As for fuel, we are thinking of getting it added to our fuel card system, as are our other 4 vans, where fuel is purchased on a need to basis by a fuel card, and direct debited to our bank a/c weekly.Putting it on the fuel card account seems the only way to cover fuel costs -as it will be used by several different employees its not possible for them to claim back business mileage individually as they will be required to top up fuel from personal funds as needed, say £30 or £40 but may only be doing 25miles themselves for that particular journey ?
do you think that this seems a viable way to handle this - or is there anything else we need to address ?
many thanks for all your help, in advance.
- Networking 39 1
- What VAT to reclaim on van purchased on HP? 249 4
- Mobile phones, directors of micro-companies 132 1
- Turnover on a tax return 248 8
- incorrect old p60 431 11
- Cashflow forecasting software 289 4
- Letter to HMRC over 3 months ago, still no reply 1,919 19
- Companies House paper incorporation - date of birth omission 268 4
- US company hiring UK citizens in UK 238 3
- VAT refund 159 1
- Is there an AIA calculator anywhere 239 1
- Reclaiming VAT on refurbishment cost? 262 3
- Missing tax return 383 4
- Are you going to Tick and Bash on 21 May? 1,119 30
- Inflation and fees 1,404 24
- Sage Priority Support 187 3
- Cost of demolition of a shed - revenue or capital? 840 24
- Micro-entity accounts 290 1
- Related party disclosure 235 3
- Company reconstruction 165 1