building a car to advertise your business.

[Batfink]

I think this is a little grey area
My business supplies parts for track and racecars and next year the plan is to go to many shows to set up a stand with a display car emblazoned with the business livery to show off our products.
How can we build our own car and put it through the books? Can you put the items through the books as advertising to come 100% against your profit? Just writing off the parts would seem a little dodgy. Would building it count as a capital gain like say buying a work van?
This car would not be road legal or ever driven on the road so theres no risk of misinterest...

[jacko lah]

Ask Regal, who built a twin LET engined Nova with about 400 bhp in each engine. That was road legal.

[DavidY]

Batfink

Talk to your accountant

I have a friend who did this, it was put through his business as a 'promotional vehicle', obviously the base vehicle is an asset and should be entered (and depreciated) as such (when it is sold it will have a value), but all the other stuff is marketing/advertising and should be ok as an expense.

davidy

Edited by DavidY on Thursday 12th July 09:30

[Eric Mc]

That sounds like the correct approach to me too.

It sounds like this would be a genuine 100% business vehicle as well. If it is not road legal, you might be able to claim the more favourable "Plant and Machinery" Capital Allowance rates rather than the more restrictive "Motor Car" Capital Allowance rates.