Hi
I'm the sole owner/director of my Ltd company, with my home address as the registered office address of the LTD company.
My company provides plumbing and heating services at different client addresses.
Upon formation of the company, I asked my accountant whether I should buy a Van through the company or personally? I was advised to purchase the Van personally and I could claim mileage for business use. Now I feel as though that advise may have been wrong, for the following reasons.
1- We have another family car used for personal journeys, and the Van I purchased for my business is merely used for business purposes.
2- Since the company address is my home address, I won't have any dis-allowable mileage for personal use, not even for driving home with it.
3- I'm paying for fuel, car insurance, MOT, road tax, parking and maintenance costs from my taxed income, whereas all of these should be allowable company expenses, which could dramatically reduce my corporation tax.
If I'm correct, can I now sell/transfer the car registration to the company, apply for new insurance through the company and pay for all fuel costs, MOT, road tax, etc. directly by the company and account those as business expenses, which they are?
I look forward to have your insight on this matter please.
Kind regards
M. Ali
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