Originally posted by WTFH
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Is business car insurance taxable as BIK?
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Originally posted by cannon999 View PostIt is a 2 year lease. What reason would I have for closing down the company?
IR35
Market downturn
Change in personal circumstances
...etc…Maybe we ain’t that young anymoreComment
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Have to resurrect this thread.
I have opted for going for personal cover rather than business cover (as business is more expensive).
Can the company reimburse me for car insurance in this case? (Car is registered to the business and I am the director) If it can - is there BIK attached? Any links to info would be useful - I have tried googlingComment
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Originally posted by cannon999 View PostHave to resurrect this thread.
I have opted for going for personal cover rather than business cover (as business is more expensive).
Can the company reimburse me for car insurance in this case? (Car is registered to the business and I am the director) If it can - is there BIK attached? Any links to info would be useful - I have tried googling
Put it this way - would you expect Tesco to reimburse you for the costs of driving to their store to do your shopping?
And I assume your insurance covers business usage - not just commuting - which is reflected in the premium...
But yes, YourCo can reimburse you and yes, it would attract personal tax at your highest marginal rate as though it were earned income, because that is what it is.Blog? What blog...?Comment
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Originally posted by cannon999 View PostIt is a 2 year lease. What reason would I have for closing down the company?
Rather odd question with the market in utter turmoil and the IR35 changes coming up.Last edited by northernladuk; 21 October 2020, 12:25.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by cannon999 View PostHave to resurrect this thread.
I have opted for going for personal cover rather than business cover (as business is more expensive).
Can the company reimburse me for car insurance in this case? (Car is registered to the business and I am the director) If it can - is there BIK attached? Any links to info would be useful - I have tried googling
Let's get this right, you got the car through your company, but you're not going to use it for company activities.
No, you can't claim PERSONAL insurance through your business, it's not a BIK, it's a personal cost. You have to pay 100% of it.
You might find your company lease on the car will specify the type of insurance you need to have. You might also find buying/leasing something for the company but using it exclusively for non-company activities might be considered fraud.…Maybe we ain’t that young anymoreComment
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Originally posted by WTFH View PostLet's get this right, you got the car through your company, but you're not going to use it for company activities.
No, you can't claim PERSONAL insurance through your business, it's not a BIK, it's a personal cost. You have to pay 100% of it.
You might find your company lease on the car will specify the type of insurance you need to have. You might also find buying/leasing something for the company but using it exclusively for non-company activities might be considered fraud.
It is a vehicle registered to the business. To use this vehicle for going to meetings this vehicle MUST be insured. How can you say that it's not expensable? That's nonsense. Expenses if you're self-employed: Car, van and travel expenses - GOV.UKLast edited by cannon999; 21 October 2020, 13:41.Comment
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Originally posted by northernladuk View PostWe've had enough threads in here with people getting caught short.
Rather odd question with the market in utter turmoil and the IR35 changes coming up.Comment
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Originally posted by cannon999 View PostThe lease agreement asks for a fully comprehensive insurance which is what this is. It's not used exclusively for non-company activities? It's used for both personal and company activities. That's allowed.
It is a vehicle registered to the business. To use this vehicle for going to meetings this vehicle MUST be insured. How can you say that it's not expensable? That's nonsense. Expenses if you're self-employed: Car, van and travel expenses - GOV.UK
But you've missed 1 obvious flaw in your argument, a limited company is leasing the car so you are not self employed.
After that the devil is in the detail here as there are probably 1000+ pages of HMRC guidance related to this, so go and ask you accountant or go and find the complete guidance and read the appropriate section.merely at clientco for the entertainmentComment
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Originally posted by malvolio View PostYou really don't understand what a BIK is, do you...
Put it this way - would you expect Tesco to reimburse you for the costs of driving to their store to do your shopping?
And I assume your insurance covers business usage - not just commuting - which is reflected in the premium...
But yes, YourCo can reimburse you and yes, it would attract personal tax at your highest marginal rate as though it were earned income, because that is what it is.Comment
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