Buying a pool car


Buying a pool car

Postby trc on Wed Nov 26, 2008 7:38 pm

Hi, I am buying a cheap runaround , for £1400.00 just as a pool car for the business.are there any tax implications etc... it is not used for private use.
Thanks.
trc
 
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Re: Buying a pool car

Postby robbob on Wed Nov 26, 2008 8:15 pm

Hi trc

Where is the car stored overnight?

How many employees will have use of the car / will be insured to use the car?

What is your trading status- Sole or Limited?
robbob
 
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Re: Buying a pool car

Postby trc on Wed Nov 26, 2008 8:18 pm

Hi ,

Parked at business address,

2 employees/both insured for use

Limited

Thanks in advance
trc
 
Posts: 117
Joined: Wed Aug 06, 2008 3:07 pm

Re: Buying a pool car

Postby robbob on Wed Nov 26, 2008 8:42 pm

Hi again

As long as the conditions below are met there will be no benefit charge and the company can claim corporation tax deduction in full for all expenes as appropriate and all input vat can be reclaimed including vat on car if charged.
http://www.hmrc.gov.uk/manuals/eimanual/eim23800.htm

It is probably sensible for the employees to keep a mileage log and mark fuel receipts so they revenue can see that the petrol claimed tallies with the business mileage done.
robbob
 
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Re: Buying a pool car

Postby trc on Thu Nov 27, 2008 2:28 pm

Many thanks for your shift reply.
trc
 
Posts: 117
Joined: Wed Aug 06, 2008 3:07 pm

Re: Buying a pool car

Postby Pards on Fri Feb 06, 2009 10:38 pm

'Pool cars' are also eligible for a VAT refund providing VAT has been paid... A full mileage log must be kept to account for every mile travelled.
Pards
 
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