Hit Hard By The New 4x4 Car Tax!!!

scotsblood

Just a note of caution, we (my former business partner and I) tried to buy vehicles for company use but without incurring a company car tax penalty even though we kept them at our respective private houses.

The following is from a reply our accountant gained asking for advice as to how we prove no personal use and therefore avoid the tax penalty;-

"...if you do consider trying to claim a company vehicle has no personal use but you as an employee would normally be allowed to use it for such then ensure "THE COMPANY" retains auditable documents relating to "EACH AND EVERY" journey for which they are paying showing "START AND END ODOMETER READING", mileage covered and journey purpose. These documents must have a direct relationship with business activity and be valid as evidence of a business expense"

In other words for every journey you need a paperwork trail as long as your arm and very deep pockets as your accountant needs to confirm every journey is an allowable expense!! We were however told that there would be an "allowable unaccountable mileage allowance" to allow for such things as moving the car off the drive to allow a delivery or collection from the premises - ONE mile each day!!

We not surprisingly decided it was too much effort and potential cost if paperwork and accountants costs got the better of us!!

scotsblood

Just a note of caution, we (my former business partner and I) tried to buy vehicles for company use but without incurring a company car tax penalty even though we kept them at our respective private houses.

The following is from a reply our accountant gained asking for advice as to how we prove no personal use and therefore avoid the tax penalty;-

"...if you do consider trying to claim a company vehicle has no personal use but you as an employee would normally be allowed to use it for such then ensure "THE COMPANY" retains auditable documents relating to "EACH AND EVERY" journey for which they are paying showing "START AND END ODOMETER READING", mileage covered and journey purpose. These documents must have a direct relationship with business activity and be valid as evidence of a business expense"

In other words for every journey you need a paperwork trail as long as your arm and very deep pockets as your accountant needs to confirm every journey is an allowable expense!! We were however told that there would be an "allowable unaccountable mileage allowance" to allow for such things as moving the car off the drive to allow a delivery or collection from the premises - ONE mile each day!!

We not surprisingly decided it was too much effort and potential cost if paperwork and accountants costs got the better of us!!

Now whether an employee without any direct influence in the company management strategy would get their employers to adopt such a system to save the employee tax remains to be seen, but I cant see it happening!

shelovestobuystuff

scotsblood wrote: »

Just a note of caution, we (my former business partner and I) tried to buy vehicles for company use but without incurring a company car tax penalty even though we kept them at our respective private houses.

The following is from a reply our accountant gained asking for advice as to how we prove no personal use and therefore avoid the tax penalty;-

"...if you do consider trying to claim a company vehicle has no personal use but you as an employee would normally be allowed to use it for such then ensure "THE COMPANY" retains auditable documents relating to "EACH AND EVERY" journey for which they are paying showing "START AND END ODOMETER READING", mileage covered and journey purpose. These documents must have a direct relationship with business activity and be valid as evidence of a business expense"

In other words for every journey you need a paperwork trail as long as your arm and very deep pockets as your accountant needs to confirm every journey is an allowable expense!! We were however told that there would be an "allowable unaccountable mileage allowance" to allow for such things as moving the car off the drive to allow a delivery or collection from the premises - ONE mile each day!!

We not surprisingly decided it was too much effort and potential cost if paperwork and accountants costs got the better of us!!

Now whether an employee without any direct influence in the company management strategy would get their employers to adopt such a system to save the employee tax remains to be seen, but I cant see it happening!

Thanks for the info!!!My hubby happenened to mention this at work as they have been talking about the company car tax and guess what? one of the guys, just one of about 15 who happened to be there at the time of the discussion does this already.Apparantly it is something my husbands employer does already, they just don't tell the staff about it.So he is getting the forms this week and from now on will only have to pay for the cost of fuel used during any private use of the vehicle.Will probably cost us about £10 a month.
Thank you:T