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.
- Halloween - do you celebrate it? 1,228 41
- Company car without a salary 95 2
- Goodwill gesture for providing work 300 10
- Sole trader hid directorships. 237 3
- Clearing payments on account/ Sage 50 239 9
- Charity donations 970 21
- Offshore company transferring assets to a UK individual. 306 13
- Recommendations for payroll/AE software? 532 11
- Problem ex client...again.. 2,125 20
- Interest on HMRC contract settlement 107 2
- VAT on finance leases 174 3
- More HMRC on gov.uk 554 10
- CONVERSION OF DIRECTOR LOAN INTO EQUITY 270 6
- Second Incomes Campaign 231 3
- Goods Purchased for Rental 691 34
- Professional Clearance 1,608 24
- Audit procedures on a dormant company 307 4
- Cash withdrawn and not accounted for 463 6
- Accounting for VAT not yet paid in year end 424 11
- Interflora florist 255 3
- NOVA 502
- Bonus Bonds 385
- Insolvency and whistle blowing 369
- Transfer of funds into recently set up company 283
- TPR imposes first penalty notice fines 250
- Box 8 VAT Return - deposit payment 177
- Husband proposes to buy the car as Director unable to acess finance 161
- Finance Lease 154
- Company Car Lease 152
- Form 42 141