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Driveway repair legitimate expense?

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Client has a business based on the same land as their home, they have a gravel drive and parking area. This has turned to mud since the limited company started due to the large volume of vans/trucks coming and going. They are planning on scraping it back and then putting down parking tiles that will be filled with gravel, which is a heavier traffic option. The total cost will be about £7K. Is this a legitimate business expense and would there be a benefit in kind charge for the personal element? Could they argue that the cost was necessitated by business use?

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By ms998
04th Mar 2019 15:24

Generally you go like for like for a repair. Eg suitable for cars both before and after.

If after it is now capable of having trucks on it is now an upgrade and would be capital?

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By LauraBeeton
04th Mar 2019 15:49

I thought this may need to be capitalised. Any thoughts on the benefit in kind for personal use?

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By the_drookit_dug
04th Mar 2019 18:30

Who owns this land? Is there a tenancy agreement in place outlining respective responsibilities?

Not enough info.

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By LauraBeeton
05th Mar 2019 09:04

Client owns the land and business. There is no tenancy agreement.

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By Tax Dragon
06th Mar 2019 09:30

If the (individual) client owns the business (as you have said twice), what is the limited company to which you refer, what does it own/do and why is BIK in point? (I’m not saying it’s not in point – I’m asking because I can’t make head nor tail of what you have said.)

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