Taxi business via ltd company but car owned by director/shareholder

[mehranmichail]

Hi all, can any one guide please,
Taxi business, one director limited Co. However, car is owned by himself the director /shareholder. My understanding is as follows ;
1. He , mean company, can't claim capital allowances for as car is not owned by company.
2. Not sure about running costs like repair and fuel. Can director be reimbursed?
3. He can claim milage allowance. In that case, no capital allowances and running costs claim allowed.
Correction will be highly appreciated.

[robbob]

3 is the correct method if owned privately - in this case the the business doesn't claim car running costs or car purchase costs as the 45/25p per mile covers tha.
I would say here there is an argument to get two quotes for you car insurance - one for normal sdp and one for taxi driver - and the business can reimburse the extra costs associated with running a taxi business - as that cost would be exclusively business related additional expense.

1 and 2 don't really work unless you go whole hog and make it a company car in which case p11d benefit rules would likely tax you out of existence unless you have a long range electric car.

Buying or leasing a nice new shiny Telsa model 3 via the company may be pretty tax efficient and save you a boatload in petrol

[bd6759]

I would say here there is an argument to get two quotes for you car insurance - one for normal sdp and one for taxi driver - and the business can reimburse the extra costs associated with running a taxi business - as that cost would be exclusively business related additional expense.

No. That cannot be done. 45p/25p is all that can be claimed (plus any finance costs).

[mehranmichail]

Thanks a lot, really appreciate it.