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.
- Loss on disposal and impairment 35 1
- Are HMRC getting it right? 72 1
- Comments on this scenario 128 3
- PPR election - what do you think? 224 7
- Starting an accountancy practice for bachelors? 138 3
- Concerned about RTI 2014 2,647 67
- Penalties 114 1
- SAGE con 227 4
- rates of pay query 222 3
- Dormant company owns shares in another company 92 2
- Recommendation for a good website on exchange rate forecast 143 10
- Pension contributions higher rate extension? 200 1
- Trading Structure / Illegal Trading 111 1
- Overpayment relief claim 157 5
- Charity reserves 131 3
- Have i messed up? 674 10
- Year end 366 4
- Test purchases in VAT enquiries 231 3
- Related Parties Note 421 9
- Annual Investment Allowance (AIA) 111 1
- Desperately seeking Susan, Sam or anyone with any other name 1,020
- Experience with Islamic investor following Sharia-compliant rules? 556
- Darwinpay Partnership Assessment 364
- Tax efficient holding company structure 290
- S464A Charge to tax: conferring benefit & BIK 277
- auto enrolment - calculation of first pension deduction 215
- Charge out rates in London? 212
- Personal consumption by landlord 183
- Interest on Loan to a Company 174
- Bank interest in 'near' facility recall situation 151