Discussion
Hi all,
I use my own car for all my business mileage and claim back the standard 40/25ppm in petrol.
My breakdown cover has lapsed and I need to get it sorted, but it suddenly occurred to me that I may be able to put it through the companies books?
Personally I don't care if I have to stand at the side of the road for 4 hours in my own time or if I can't start the car in the mornings, but if it is costing my business money, then my business cares. Ergo, the business should pay for it.
Anybody know if this is OK or not, and if the same can be applied to any other situations such as healthcare etc?
Cheers
I use my own car for all my business mileage and claim back the standard 40/25ppm in petrol.
My breakdown cover has lapsed and I need to get it sorted, but it suddenly occurred to me that I may be able to put it through the companies books?
Personally I don't care if I have to stand at the side of the road for 4 hours in my own time or if I can't start the car in the mornings, but if it is costing my business money, then my business cares. Ergo, the business should pay for it.
Anybody know if this is OK or not, and if the same can be applied to any other situations such as healthcare etc?
Cheers
If you are sole trader, you should be able to claim a business proportion for AA membership - it's no different to any other motoring cost and is treated in the same way.
If you run a limited company, if the AA membership is in your own personal name., then if the company claims it as a business cost, you might need to declare the fact that the company paid for your personal AA membership a Benefit in Kind.
If you run a limited company, if the AA membership is in your own personal name., then if the company claims it as a business cost, you might need to declare the fact that the company paid for your personal AA membership a Benefit in Kind.
It's your personal car.
It's your personal AA fee (it's billed to you personally by the AA)
Therefore, if your company pays the AA bill, the company is settling one of your personal liabilities.
The Inland Revenue normally expect individuals to settle their own personal bills using their own personal money - which they would have obtained from their company/employer through normal salary which had already been taxed and NI'd. Therefore, if the company starts paying your personal car running costs directly, the tax man resents the fact that you have bypassed the PAYE sytem, so he will try and tax this "benefit" under the Benefit in Kind System instead. In your case, that woyuld equate to £4,000 tax free into your hands.
If you had taken co-directors or work colleagues in the car with you on a business trip, the mileage rate goes up to 45p per mile for those particular trips.
Do you claim mileage expenses from your company for using youir own private car on company business? You are perfectly entitled to do this under the tax regulations. You can claim up to 40p per mile for up to 10,000 business miles without you suffering any additional personal tax. That 40p per mile claim would be taken to include the covering of ALL the business element of your personal vehicle running costs - including AA fees.
>> Edited by Eric Mc on Tuesday 17th January 10:19
It's your personal AA fee (it's billed to you personally by the AA)
Therefore, if your company pays the AA bill, the company is settling one of your personal liabilities.
The Inland Revenue normally expect individuals to settle their own personal bills using their own personal money - which they would have obtained from their company/employer through normal salary which had already been taxed and NI'd. Therefore, if the company starts paying your personal car running costs directly, the tax man resents the fact that you have bypassed the PAYE sytem, so he will try and tax this "benefit" under the Benefit in Kind System instead. In your case, that woyuld equate to £4,000 tax free into your hands.
If you had taken co-directors or work colleagues in the car with you on a business trip, the mileage rate goes up to 45p per mile for those particular trips.
Do you claim mileage expenses from your company for using youir own private car on company business? You are perfectly entitled to do this under the tax regulations. You can claim up to 40p per mile for up to 10,000 business miles without you suffering any additional personal tax. That 40p per mile claim would be taken to include the covering of ALL the business element of your personal vehicle running costs - including AA fees.
>> Edited by Eric Mc on Tuesday 17th January 10:19
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