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Thread: Vehicle tax Implications?

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    Vehicle tax Implications?

    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

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    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

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    Quote Originally Posted by Kevinb View Post
    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?

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

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    Site Caretaker Dave A's Avatar
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    Quote Originally Posted by Kevinb View Post
    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.

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