Share this content

Fuel expenses on rental vans via director

Didn't find your answer?

I'm getting very different views on this and starting to question my own ability. 


Sole trader just incorporated with 2 directors who are working as empoyees and 2 employees. The Vans were bought by each directors when they were sole traders on HP. Both Vans are still under HP. If they can't change the lease over, can the directors rent them to the company and then reclaim all fuel receipts. The vans can be used by any employee for business use only including travelling from home to each job as no office. 

If yes is it a BIK issue or do they just need to pay fuel scale charges on the VAT on the fuel receipts. 

The directors should then just submit a self assessment for the rental income and pay any tax due. Are there any allowable expenses they can offset against the rental income? Is the cost of the HP in their name allowable for their own self assessment? 


Replies (2)

Please login or register to join the discussion.

By Tax Dragon
24th Sep 2020 09:41


I'm getting very different views on this and starting to question my own ability.

I'm starting to agree with you.

Thanks (0)
By Duggimon
24th Sep 2020 11:15

There are multiple issues in your post. I'll start with the most obvious one, HP payments are not a lease expense so can't be netted off against revenue, whether paid by the company or by the directors.

The directors can rent their vans to the company but they probably shouldn't, not least because it will result in their accountant bu99ering up the tax if they do.

Thanks (0)
Share this content

Related posts