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Company claim motor exp without a motor asset?

No motor vehicle in BS but want to claim motor expenses

Didn't find your answer?

Can a company claim motor expenses such as fuel, insurance, road tax etc if they do not have a vehicle in the company?

Many thanks,

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By Jaybur
30th Mar 2020 14:47

There are a lot of people viewing but not commenting so I'll start.

My opinion is that this is not allowable as the company does not have a vehicle to which to claim the expenses against.

Is this wrong?

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Psycho
By Wilson Philips
30th Mar 2020 14:50

Whose vehicle is it?

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Replying to Wilson Philips:
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By Jaybur
30th Mar 2020 14:52

Thank you for the reply,

It is the director's.

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Replying to Jaybur:
Psycho
By Wilson Philips
30th Mar 2020 15:33

Two options then:

Put everything through the P&L and claim a deduction. The payments, though, should (probaby) properly be treated as additional earnings of the director, subject to PAYE, and E'ee and E'er Class 1 NI.

Or - usually my preferred option - post the whole lot to DLA and then offset with a business mileage claim.

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Replying to Wilson Philips:
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By Jaybur
30th Mar 2020 15:44

Thank you Wilson,

Option two is how I thought this should be handled.

Very much appreciate the advice.

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By Mr_awol
30th Mar 2020 14:51

If they hire a car vehicle, then fuel etc yeah.

If they pay mileage for employees' own cars, then some other MRE may be allowable - parking etc.

I cant see any basis for paying the insurance and road tax for a vehicle that isn't theirs,

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Replying to Mr_awol:
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By Tax Dragon
30th Mar 2020 15:24

Part of the remuneration package?

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Replying to Mr_awol:
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By Jaybur
30th Mar 2020 15:50

Thank you AWOL for helping to clarify.

Although there was no car hire it is useful to know that the associated costs, in that situation, could be claimed.

Many thanks,

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