Company Van

[Carbonio]

Could someone explain how we claim for a company van in our accounts?

We are probably going to use the company credit card, or possibly a personal card then transfer to a 0% card and pay it off within the time to get an in effect interest free loan.

What can we claim for, fuel, insurance and repairs wise?

The van will be used by 2 directors, the company is not VAT registered at the moment and will not be used for personal use at all.

Is there any tax to be paid or anything else to consider?

Thanks.

 

[JBlack]

Assuming it is classed as a commercial vehicle, then I believe I'm correct in saying benefit in kind isn't a consideration, i.e. there would be no personal tax implications.

You can claim for all related expenses to the running of the vehicle, and for the full cost of all fuel purchased (including VAT) - but no mileage claims can be made in relation to it!

 

[Carbonio]

Assuming it is classed as a commercial vehicle, then I believe I'm correct in saying benefit in kind isn't a consideration, i.e. there would be no personal tax implications.

You can claim for all related expenses to the running of the vehicle, and for the full cost of all fuel purchased (including VAT) - but no mileage claims can be made in relation to it!

Great, thanks for the reply.

 

[JBlack]

Hang on, sorry, I had second thoughts about the first bit of what I said, and just did some research. I'm not so sure now, I may have been wrong about the benefit in kind bit. I stand by the rest of it, but better seek confirmation about personal tax implications for any private use of the van.

 

[Carbonio]

Hang on, sorry, I had second thoughts about the first bit of what I said, and just did some research. I'm not so sure now, I may have been wrong about the benefit in kind bit. I stand by the rest of it, but better seek confirmation about personal tax implications for any private use of the van.

The van will not be used for any private use but if someone could clarify the situation that would be great.

 

[JBlack]

Oh yeah, sorry, I missed that bit about no private use in your original post.

Still, if the van would ever be parked outside the home of either you or the other geezer, then I believe HMRC take the stance that it is available for private use, and whether it is or isn't actually used privately, they will assume that is being.

I once read something along the lines that according to HMRC, you're guilty until proven innocent when it comes to this issue...

 

[StevensOnln1]

You need to keep mileage logs of all business journeys to be able to prove that there is no private use.

Sent from my GT-P1000 using UK Business Forums

 

[David Griffiths]

There is no charge to benefit in kind on a van that is used for ordinary commuting to and from work. If there is other private use of the van, then the benefit in kind will apply unless such private use is insignificant.

What is defined as insignificant private use is explained in this HMRC Factsheet. It specifically addresses the question of record keeping and it is not necessarily the case that mileage records have to be kept - it is quite possible to enter into a written agreement about the use of the van. Such an agreement will forbid private use beyond the boundaries of insignificance.

 

[Carbonio]

There is no charge to benefit in kind on a van that is used for ordinary commuting to and from work. If there is other private use of the van, then the benefit in kind will apply unless such private use is insignificant.

What is defined as insignificant private use is explained in this HMRC Factsheet. It specifically addresses the question of record keeping and it is not necessarily the case that mileage records have to be kept - it is quite possible to enter into a written agreement about the use of the van. Such an agreement will forbid private use beyond the boundaries of insignificance.

Thanks David, that's great. I'll make sure agreements are signed.