Personal Vehicle for Business Use.

[VEX]

I have just personally bought a pick up truck for my business use, it was a crackin price, and the lease on my old one has ended so it has gone back.

So the question is, do I need to go back to tracking my mileage for each individual trip or has it got easier for small businesses now?

It is only going to be used as a business vehicle so it should be easy to track and I will be able to charge the business 40P per mile.

V.

[MrSparks]

You can only claim mileage if you own it personally.

45p per mile for the first 10,000 miles and 25p thereafter.

I've just been through all this, I decided against a truck and have ordered a car instead, claiming mileage. It's not as tax efficient as leasing a truck/van on the company but you can still claim a fair amount each month.

If you use it personally you need to add tax for private use of vehicle (£3000 off your pre-tax allowance, works out to about £600 p.a) and fuel benefit if you pay for fuel on the company.

Obviously all tax/insurance/mot's will have to be paid for personally.

[Eric Mc]

Is your business a limited company?

[EU_Foreigner]

MrSparks said:

Obviously all tax/insurance/mot's will have to be paid for personally.

I have claimed all servicing / insurance costs etc without problems for the last 20 years and had 3 VAT inspections and a vehicle use inspection as well for my private tax return (I had to justify mileage that was used for the business, which I maintain in a spreadsheet).

[Eric Mc]

That statement means nothing without context.

[VEX]

Eric Mc said:

Is your business a limited company?

Yes it is limited.

Does that make a difference?

V.

[Eric Mc]

Yes - it makes a massive difference.

If you have bought a pickup truck through your limited company, then the vehicle becomes a business owned vehicle. A pickup truck would normally be classified as a "Commercial Vehicle" so the tax rules pertaining to it will be those relating to "Commercial Vehicles" rather than "Motor Cars", which are quite different.

Firstly, the pickup will be eligible for better Capital Allowances claims - so that will help reduce the company's Corporation Tax bill.

Secondly, the taxable Benefit in Kind rules related to Commercial Vehicles are much less onerous than they are for Motor Cars.

I would strongly advise that you have a chat with your accountant so that he/she can go through the tax implications of what you have done.

[Broccers]

Why didnt you buy the pickup through your company?

[megaphone]

You can get the VAT back as well on a pick-up, if you buy through the company.

[VEX]

i understand all the vat and business implications of what I have done, don't worry there where some very specific reasons for doing it which far out weigh the advantages of it being a business purchase.

So, do I still have to itemise my journeys and mileage for business use?

V.

[Broccers]

What do you reckon?

;-)

[VEX]

I don't know, it's been 10 years since I last had to do this side of it.

Hence the reason for asking the question.

V.

[Broccers]

You're on about using a private car for business miles, as it's your car what other miles would you be claiming for?

It's not too late to sell the pickup to your company which is the best course of action.

[VEX]

Not when there we a big advantage to me buying it privately.

So, I still need to make a list of everywhere I went and now many miles it took?

V.

[marshalla]

VEX said:

Not when there we a big advantage to me buying it privately.

So, I still need to make a list of everywhere I went and now many miles it took?

V.

Yes. You'll need to claim your mileage from the business and it will need to be detailed.

And make sure you have the right level of insurance cover for whatever you're planning to do. From the sound of it, Class 1 business isn't going to be enough.

[VEX]

Insurance is all sorted, it has just transferred from the old identical pickup truck to this one.

Provided by Insurance Jon of this neighbourhood and full business cover.

Thanks for taking time to actually answer the question.

Any good tracker apps for the iPhone?

V

[Eric Mc]

I think the advantages of having the vehicle owned by the business outweigh owning it privately.

What did your accountant advise?

[Sixpackpert]

Eric Mc said:

I think the advantages of having the vehicle owned by the business outweigh owning it privately.

What did your accountant advise?

This.

Circa 80-120 quid a month in tax for a fully expensed van (private fuel included) versus personally paying for maintenance, tax, fuel, depreciation, tyres etc etc.

Plus getting the VAT back on the purchase when purchased through the company.

Can't see how you would be better off owing it privately tbh!

Edited by Sixpackpert on Friday 19th December 17:26

[mjb1]

VEX said:

Not when there we a big advantage to me buying it privately.

So, I still need to make a list of everywhere I went and now many miles it took?

V.

I'm curious - what is this "big advantage"?

[matty g]

If you own the vehicle and are going to charge the company then you can charge what you like. Be it 40P pm or £100 per mile.
Its just at the approved mileage rate you wont pay tax on it.