Employee crashes into back of member of publics [MOP] car....minor damage
Rather than going thru insurance co [losing no claims etc and having renewal loaded]....company pays the MOP a lump sum [estimated repair costs plus inconvenience cost].
Is this an allowable business expense??
Replies (7)
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Probably
But you almost certainly have to disclose to the insurer anyway.
Someone hit my car when I was stationary at a set of lights; they paid up for repairs. I was advised that I needed to disclose this on my insurance renewal and the insurer hiked my premium!
That is shocking
But you almost certainly have to disclose to the insurer anyway.
Someone hit my car when I was stationary at a set of lights; they paid up for repairs. I was advised that I needed to disclose this on my insurance renewal and the insurer hiked my premium!
It is quite shocking that a 'non fault' accident affects your premium - but nothing suprises me with the world of insurance I suppose.
There is a wormhole on Accountingweb that seems to swallow information.
It can be deducted as a business expense, presumably because this will be a BIK for the employee.
Details important
cheekychappy is simply pointing out that the car being a company car is rather an important detail. One that should have been included in the question.Ah ... it was a company car. The wormhole strikes again.Are you attempting to answer the question??
If the car had been the employee's private car, then there were potentially other issues arising. That is why it is important to include all details at the start. Respondents are likely to have guessed that it was a company car, but responses based on guesses may prove misleading.