Fleet insurance on Directors Car

BIK/ Classify as drawings

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Hi,

Company Director owns car personally. In the accounts, car fleet insurance is present in the company name for the directors car to enable other employees to use the car for the purposes of business and also the director.

If this is claimable for the company, I would assume there would be a BIK tax charge on the director unless they also have their own personal insurance? And what about the other employees that use the car? It can't be classed as a pool car as it is not owned by the company.

The bookkeeper has advised to just post the amount to drawings as the director is in credit so i would just like peoples thoughts on the most efficient way to deal with this please and advise the client going forward.

Many thanks

Replies (2)

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RLI
By lionofludesch
24th Jul 2018 15:31

Seems a strange arrangement.

Usually a fleet policy would only cover vehicles owned by the company.

Have you checked the facts ? And is the insurance company aware that the company doesn't own the car ?

Worst case scenario here is that the car isn't insured ........

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Replying to lionofludesch:
By Ruddles
24th Jul 2018 15:46

Agreed

In the event that the car is covered under the fleet insurance, what is the cost of adding that car to the policy? The BIK is the marginal cost to the company.

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