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Buying a pool car
Posted: Wed Nov 26, 2008 7:38 pm
by trc
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.
Re: Buying a pool car
Posted: Wed Nov 26, 2008 8:15 pm
by robbob
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?
Re: Buying a pool car
Posted: Wed Nov 26, 2008 8:18 pm
by trc
Hi ,
Parked at business address,
2 employees/both insured for use
Limited
Thanks in advance
Re: Buying a pool car
Posted: Wed Nov 26, 2008 8:42 pm
by robbob
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.
Re: Buying a pool car
Posted: Thu Nov 27, 2008 2:28 pm
by trc
Many thanks for your shift reply.
Re: Buying a pool car
Posted: Fri Feb 06, 2009 10:38 pm
by Pards
'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.