Taking the van home

[WorcsWuss]

Murky area! I'm in the company car scheme, when I have a car, I get taxed on it. I've been out of the scheme for almost a year and so haven't been paying any BIK on a company car because I haven't had a car. [but did order my new one yesterday, excited!].

Over the last year I have had use of a pool car which occasionally I take home with me if I'm going off to a meeting straight from home in the morning. I don't get taxed on this.

If I was using that car to commute to my office and had regular use of it for personal use I would get taxed on it as it would be a perk. As it is it's just for business transport when needed so isn't a perk.

If you're taking a works van home some / most of the time and going off to different places of work each day then it's not a perk.

If you're taking a works van home which is classed as 'yours' on a daily basis, then going back to the yard every morning and the supermarket etc on the way home, strictly speaking that is a perk so you should be taxed on it.

 

Sounds to me like you're fine...

[benedmonds]

I wish :-)

 

Keep wishing it ain't happening!

[Albedo]

As you quite rightly are concerned about your tax situation there may be a bigger concern here... or not.

 

If you are self employed (an assumption on my part) and if you have one employer (another assumption) who lets you take the van home.

 

A bigger concern would be that you should be on the books and not self employed.

 

My assumptions may be wrong here.

 

Anyway, half the civil service are at this particular tax dodge ... so why should we care.

 

My point being that to be self employed for tax purposes you need more than one employer.

[Eddie Coyle]

Keep wishing it ain't happening!

 

1 day =-)

[benedmonds]

1 day =-)

 

When you move onto the yard in a caravan...

 

Back to the thread. Or related to the thread..

We changed from a partnership to Ltd co, this has created issues. As I understand it as a partnership there is no problem having a car (4x4), the business can pay for it and fuel etc. As soon as you become ltd everything changes, and a car especially a big 4x4 becomes very expensive tax wise.

 

From my accountant:

 

"The vehicle would have to be in the name of one of you and that person would be taxed on the “benefit” of having a company vehicle, there would be a further “benefit” if fuel is also supplied. I cannot be absolutely accurate on these figures as I don’t know the precise model, however the vehicle benefit is around £11,000 and the fuel benefit is around £7000. These figures would be added to your taxable income and if tax is still payable at basic rate (which it probably won’t be), the tax would be £3600. If the tax was payable at higher rate, the annual tax would be £7200. In reality, the tax will fall somewhere between these figures."

 

The alternative is to keep the vehicle out of the company and for the company to be charged 45p / mile for any business mileage.

 

If its is a van then it's OK..

[likeitorlumpit]

When you move onto the yard in a caravan...

 

Back to the thread. Or related to the thread..

We changed from a partnership to Ltd co, this has created issues. As I understand it as a partnership there is no problem having a car (4x4), the business can pay for it and fuel etc. As soon as you become ltd everything changes, and a car especially a big 4x4 becomes very expensive tax wise.

 

From my accountant:

 

"The vehicle would have to be in the name of one of you and that person would be taxed on the “benefit” of having a company vehicle, there would be a further “benefit” if fuel is also supplied. I cannot be absolutely accurate on these figures as I don’t know the precise model, however the vehicle benefit is around £11,000 and the fuel benefit is around £7000. These figures would be added to your taxable income and if tax is still payable at basic rate (which it probably won’t be), the tax would be £3600. If the tax was payable at higher rate, the annual tax would be £7200. In reality, the tax will fall somewhere between these figures."

 

The alternative is to keep the vehicle out of the company and for the company to be charged 45p / mile for any business mileage.

 

If its is a van then it's OK..

 

I agree with this

We took our car out of the company once we went Ltd and pay ourselves 45p a mile to use it:thumbup1:

Also pay staff who use their own vans occasionally 45p per mile- it's tax free so everyones happy.

[Tom D]

Yes, if it were a company vehicle you would be getting paid considerably less than you are and then gettign taxed as if you were earning that amount (or nearly)

 

The whole point of company cars is that they are part of an employment package, so if one company offers you 20K and another offers 18K plus a car, you take the second offer, but you will get taxed on that car which essentially belongs to you (for the duration of your emplyment)

 

Taking the truck home is not the same thing at all. Its not your vehicle. Some companies (im think office types, not tree work) have "pool" cars. They can be taken home and the employees are not taxed, its not the same as a "company car".

 

Who is suddenly going to tax you for it anyway?

Sorry Rupe that is totally wrong.

 

As far as the tax man is concerned a pool car stays overnight at the work premises, employees must get to work by their own means, if employees are allowed to take it home regularly then it becomes a benefit, and must therefore be taxed. If an employee has the use of a works vehicle, even if it is just used to and from home, then this is a benefit and must be taxed as a company car. These rules are widely abused, they are also very complicated, rates of tax change according to vehicle type i.e. van or car, milage, and emissions.

[agg221]

Two important factors are whether the benefit is discretionary or a defined benefit, and whether it is occasional or regular. I've worked for two companies which have allowed occasional use of company vehicles on a discretionary basis. They were large companies with very clear understanding of the tax position (i.e. it wasn't just that they weren't asking any questions). Whilst at the first company I borrowed the Volkswagen Sharan once in three years to drive to Shropshire and back one day to pick up a small boat engine. Whilst at the second company I borrowed the van twice in ten years, once to move a load of floorboards and again to move house. This hasn't caused either company any tax concerns.

 

Alec