Company car

Matt_L

I have a small business which sometimes involves long journeys to meet potential clients so instead of using my personal car or company van ive decided I may buy a nice company car. However I may on rare occasion use the company car for private use..

I wish to buy the car through my company account however I am happy to pay the full cost of the car in full (not claim VAT back) and fuel the car out of my own personal pocket.. Also if an employee wishes to use the car im happy to let them as long as they pay for fuel out of their own pocket...

Do I need to inform HMRC? Do I need to pay any additional Taxes??

Thanks

Car_54

Matt_L wrote: »

I have a small business which sometimes involves long journeys to meet potential clients so instead of using my personal car or company van ive decided I may buy a nice company car. However I may on rare occasion use the company car for private use..

I wish to buy the car through my company account however I am happy to pay the full cost of the car in full (not claim VAT back) and fuel the car out of my own personal pocket.. Also if an employee wishes to use the car im happy to let them as long as they pay for fuel out of their own pocket...

Do I need to inform HMRC? Do I need to pay any additional Taxes??

Thanks

I can't see why anyone wouldn't want to claim back VAT, not to mention depreciation. And any personal use by you or your employees is taxable as a benefit in kind.


You need to take advice from your accountant.

Jonesya

You need to speak to your accountant.

But generally a company car which is provided to an individual and available for personal use is subject to Benefit In Kind taxes paid by the employee and additional taxes paid by the employer.

Even if you pay the fuel costs yourself, you are still liable for those taxes if its provided by the company.

If its your own business you probably want to look at whether its better to keep your own personal car and charge the business normal mileage costs.