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.
- Thinning income 353 4
- Allowable for Corporation Tax? 257 6
- Bank Statement Scanning Software? 145 2
- Work to Rented Business Premises 169 1
- Not a question but made my day 1,171 23
- Directors, service companies and national minimum wage (NMW) - Profit extraction 385 11
- Employee leaving mid month and Payroll Manager 1,151 24
- IHT400 or IHT205 - disagree with solicitor 138 1
- Amending 13-14 sole trader return to reflect increased profit in 14-15 272 4
- I forgiven loan an Output? 170 2
- V T Software 230 2
- How do I know if I have to apply a reverse charge mechanism 143 3
- SA302's - What's the deal? 352 4
- tax credits 294 4
- Past rental expenses 133 1
- What do do about VAT? 553 15
- Buying a company for £2000 from owner how it works? 298 5
- Vat Exemption moving to a partnership 195 2
- Audacity 1,329 22
- Seeking advice: Paying Funeral Costs 696 8
- NHS finance professionals 599
- Auto Enrolment and Foreign employers 390
- Foreign Pension Contribution 363
- vat gross profit percentage margins 334
- Employee's statement of sickness (SC2) form - no longer available as downloadable pdf 325
- Pre Season Invoice dated September how do you treat the VAT as not due until May 16 306
- SWAT AML v Anti Money Laundering Compliance Plus (AMLCP) 275
- Does pension term assurance count for unused relief purposes? 232
- Quickbooks online filing of VAT 207
- IFA income recognition & reporting 200