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What is allowable for Directors personal van

Directors personal van

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A builder has just started a limited company, he is the director and only employee.

His personal van is used only for work purposes. He is wanting to expense his van lease payments through the business. He also is paying all his fuel costs through his company and is also wanting to pay for the insurance ect... costs of the van. 

Does he need to submit a P11d if he does all of the above?

Or is he best to work out his mileage allowance and any over claim on fuel if it is more he then owes to his company? 

 

 

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By David Ex
23rd Oct 2021 21:06

He needs to speak to an accountant.

Who advised him to operate via a company? Not necessarily the right decision, depending on various factors. Definitely worth an accountant looking at it.

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By Paul Crowley
23rd Oct 2021 21:34

Who's name is on the lease?

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By Hugo Fair
23rd Oct 2021 21:37

1. Does he (you?) never park the vehicle overnight on his drive or in his garage (or even on the public road near his home)?
2. In whose name is the Lease contract (the person or the limited company)?

Those are just the first 2 questions that your accountant will probably ask you when trying to establish the facts - before being in a position to advise you as to the options available to you.
Of course there would have been more (and probably better) options if you'd sought advice from your accountant before taking actions that you may yet come to regret.

And if you're thinking "what accountant?" ... then you need to go and appoint one before you end up in potentially bigger and more expensive holes.

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Replying to Hugo Fair:
RLI
By lionofludesch
23rd Oct 2021 23:20

Hugo Fair wrote:

1. Does he (you?) never park the vehicle overnight on his drive or in his garage (or even on the public road near his home)?

It's a van, so that would be fine. Moreover, it's his own van.

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Replying to lionofludesch:
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By Hugo Fair
24th Oct 2021 00:40

It was merely an illustrative point that OP needs to go through all the facts with an accountant (preferably before, not after, entering into actions like Leases and Incorporation).

FWIW, OP said "His personal van is used only for work purposes" which suggests (when coupled with later comment about reporting it all via a P11D) that he/she is contemplating the Lease being converted over to the company - as otherwise it cannot be a BiK - in which case the relevance of private vs business usage, as you say, has been misunderstood.

And, even after several reads, I can't work out what OP's final question means ... so rather than setting off down the track of trying to elucidate the facts behind OP's questions by asking numerous further questions, I'd rather that her/his accountant was asked (or appointed if not in place already).

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RLI
By lionofludesch
23rd Oct 2021 23:19

@OP

It looks like your client has jumped into this limited company decision without thinking things through.

When does the van contract end?

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