Ltd Company Tax. A T32 for business use that is parked at home.

[VanMan48]

Just a quick question as I'm sure there are lots of folk here with their own ltd co who put their kombi through the books. I'm looking to get a T32 LWB kombi for my work basically.

A T32 is clear cut due to payload etc that VAT is reclaimable, I know that much. Thats the easyn bit.

The benefit in kind issue bother me though, as hmrc see these as 'cars' (as they have rear windows and seats), and even if you say its just for business use, if its parked at home then they see it being 'available' for private use and therefore the dreaded BIK is charged. The 'incidental' use they allow seems to be for 'vans' only.

My work needs the cargo space that a LWB offers as well as I have to take up to 3 other people to jobs with me.

No other vehicle would tick the box, but all my hot air explaining this seemingly wouldn't wash if they checked. My ltd co is my home address so keeping it off site somewhere is not possible.

So wondered what other do here these days? No one wants a backdated bik car tax to deal with, so seems there is no way round this other than finding a van with no vat on it and buying privately.

 

[Salty Spuds]

I had similar discussions with my accountant back in the day. Van parked at home etc. I claimed 100% business use on the van, for both VAT and BIK, my argument being that we had a car for domestic duties and I could tie the mileage on the van to my business miles. Never had a problem.

 

[VanMan48]

I had similar discussions with my accountant back in the day. Van parked at home etc. I claimed 100% business use on the van, for both VAT and BIK, my argument being that we had a car for domestic duties and I could tie the mileage on the van to my business miles. Never had a problem.

My account is super cautious about it all. Its my call at the end of the day however. I have a legit need for one, but it seems in the eyes of the law they can bill me for company car tax if they see fit. Its not a fair system and very frustrating!

 

[Salty Spuds]

My account is super cautious about it all. It’s my call at the end of the day however. I have a legit need for one, but it seems in the eyes of the law they can bill me for company car tax if they see fit. It’s not a fair system and very frustrating!

Whenever the accountant and I crossed swords, he’d ask me if I could stand up in court and defend my position. If I said yes, he’d claim. That became a bit of a joke between us and we called it the court test.

 

[DXX]

Forget accountants, MPs are far better at skirting around HMRC rules.

 

[Sasquatch]

Get elected to parliament, designate it as a second home and they'll pay you!