Car for advertising and development.

[mickytruelove]

I started a ltd company at the start of the year and still figuring some things out.

I understand the company car vs claiming millage of personal vehicles but how would owning a race car for advertising or developing new parts be accounted?

Would you still have to pay the same taxes as a regular company car?
If the car was worth £20k and the engine decided to grenade itself and now the car is worth £10k, how would you keep records for this and would you have to prove it happened?

[Zoon]

If you own a racing team then I think it could be offset against profits for R&D costs.
If you do something totally unconnected then I think you would have to class it as an advertising cost maybe?

[Eric Mc]

Been asked a number of times before on PH - naturally enough being a car forum and with quite a few people running their own businesses.

In the case of a racing car - who would be doing the racing?
The director by any chance?
Or perhaps a relative of a director?

[mickytruelove]

i do remember reading a thread about sponsoring a race team and the issue with the director doing the racing.

It would rather be for advertising and developing new parts.Really just wondered how you would keep accounts for an engine blowing up or if the same company car tax was applicable.