Vehicle tax Implications?

[Just Gone]

A vehicle that is in a persons name but is paid for by the same persons company - can it be expensed? ie the company has been paying the monthly installments - auditors want to put it to a loan account - is there any other way to rather put it thro the company rather?

Any help is appreciated please

[Yvonne]

This is not professional advice please note:

But as far as I know, the payment made by the business for the vehicle in the persons private name would have to be a taxable earnings, but could be reduced substantially if the individual has proof of the mileage for the business which can then be claimed back as a deduction from the earnings on a mileage basis.

You need an expert to work it out for you! LOL

[Dave A]

is there any other way to rather put it thro the company rather?

Have the company registered as the owner. (The exception is if the business is a sole proprietorship)

auditors want to put it to a loan account

The alternative is having it added to the owner's remuneration as a vehicle allowance.

The big question is - have you kept a log book of private and business use?

[Just Gone]

Thanks Yvonne - thanks Dave .........no my wife has not kept a log book of private and business use ....... is this a problem ?

[Dave A]

no my wife has not kept a log book of private and business use

Could you/she go over her diary and create one?

Maintaining a log book is pretty significant in terms of realising the tax efficiency potential of a travel allowance.