Company Car Tax Confusion

rishishah

I am a Director of a small business.

I have two cars in the family and the car i use is soley used for my business purposes only. I never ever use the car for private use.

Because my business is a small consulting business my office is a small part of my home and i generally work at customer sites.

I currently claim the 40p per mile.

I have been looking into getting the business to buy the car and turn it into a company car. However from what i have heard so far because my office address is my home address, HMRC would not accept that this is a company car soley used for company purposes only and hence would tax me for the benefit.

I am happy to keep detailed logs of the driving/mileage to show i use it solely for business purposes only.

Can i make this into a Company Car and offset it against Corporation tax without having to pay tax (benefit) as this will be used only as a Company Car?

Any advise is appreciated.

fengirl_2

The rule for company cars is that if the car is AVAILABLE for private use, then there is a benefit in kind. You would therefore have to legally restrict the use of the car to business only - not sure how - by insuring for business only?

rishishah

I would get Business insurance for the car so that would not be a problem.

However from what information i have gained it seems that the fact tha my office addess is also my home address means i ould have to pay a BIK, although i could ensure that the car was ONLY used for business ever.

I suppose the next option is to ask HMRC, however their Contact Us on the website makes it next to impossible to contact them.

Rishi