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Can employer pay for private car repair ?

Employee damaged car on company business - can the employer pay ?

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I have a client who is sole director of her own Ltd Co.

She uses her personal car for business and claims mileage

She has damaged her car whilst on a business appointment - can her company pay for the repair and claim a deduction against corporation tax without incurring any benefit in kind ?

Can't work out if this is "wholly and exclusively" for the purposes of the trade !

Many thanks

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By Accountant A
11th Jul 2018 12:10

As she will have insured her car for business use, she should be claiming on her insurance. What the employer pays for business mileage is usually to cover all running costs - including business insurance. Has the full 45p/25p been being paid? If not, I suppose you could "top up".

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Replying to Accountant A:
RLI
By lionofludesch
11th Jul 2018 12:26

Accountant A wrote:

As she will have insured her car for business use, she should be claiming on her insurance.

Gosh - what a bold statement to make ! She may only have third party insurance - we've no idea.

We need to know more about the circumstances of this damage. It may well be that it's not a normal running cost. How much is involved ?

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Replying to lionofludesch:
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By Portia Nina Levin
11th Jul 2018 12:33

Oh no we don't. If the employer pays there is a benefit. The only thing permitted by the law, in relation to the use of a non-company car, is mileage payments. End of.

Whatever the employer pays is tax deductible. Again, end of.

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Replying to Portia Nina Levin:
RLI
By lionofludesch
11th Jul 2018 12:42

What about trivial benefits ?

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Replying to lionofludesch:
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By Accountant A
11th Jul 2018 13:36

lionofludesch wrote:

What about trivial benefits ?

£50 repair? You might just get your number plate screwed back on for that!

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Replying to Accountant A:
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By Mr_awol
11th Jul 2018 15:08

Accountant A wrote:

lionofludesch wrote:

What about trivial benefits ?

£50 repair? You might just get your number plate screwed back on for that!

Would pay for a puncture repair I guess.

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Replying to Mr_awol:
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By Accountant A
11th Jul 2018 16:18

Mr_awol wrote:

Would pay for a puncture repair I guess.

Quite possibly but the OP said "She has damaged her car ..." which would be an unusual description of a puncture.

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Replying to Accountant A:
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By Mr_awol
12th Jul 2018 11:49

Accountant A wrote:

Mr_awol wrote:

Would pay for a puncture repair I guess.

Quite possibly but the OP said "She has damaged her car ..." which would be an unusual description of a puncture.

It would - but it would be an even more unusual description of [***] a numberplate back on.

I assume we all accept that 'proper' repairs wont be allowable and since someone has suggested trivial benefits, I've moved on to the type of stuff that IS possible rather then an endless and comprehensive list of things that ISNT.

Otherwise we may as well lock the thread now.
Edit: not sure why 'screw1ng' has offended the profanity filter............

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Replying to lionofludesch:
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By Portia Nina Levin
11th Jul 2018 13:42

Keep wriggling!

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Replying to Portia Nina Levin:
RLI
By lionofludesch
11th Jul 2018 13:47

Jeez - up here, you can get a new car for £50.

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Replying to lionofludesch:
Oaklea
By Chris.Mann
11th Jul 2018 13:51

And, in Barnsley, they are usually 4 leeters. That's two (lights that is) on the front and rear!

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Replying to lionofludesch:
Oaklea
By Chris.Mann
11th Jul 2018 13:49
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paddle steamer
By DJKL
11th Jul 2018 16:48

One other angle, was her company in any way negligent re the damage to her car e.g. in the course of loading a filing cabinet into the tailgate the paint was scraped etc etc. Short of the company having a legal obligation for damage caused not convinced much mileage .

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Replying to DJKL:
RLI
By lionofludesch
11th Jul 2018 16:56

DJKL wrote:
<...... not convinced much mileage .

Good pun.

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