Self employed BIK question

[VanMan48]

The BIK question been raised a few times I know, but if I bought a new kombi or a camper which is going to be my sole mode of transport to get to work (which is normally long days in various parts of the UK), have folks here avoided the dreaded BIK? I also work from home in between so the van has to be parked there, but I've read something about the grey area HMRC say about even if it is 'available' for private use you could be hit? I guess if you keep a good milage log it should cover that issue. We also have a private car we can use for school runs etc.

Anyone done the same? I'd also want to reclaim vat which I know is repayable back once you get rid, but it would go back to the dealer anyhow.

 

[Dave Mac]

The BIK question been raised a few times I know, but if I bought a new kombi or a camper which is going to be my sole mode of transport to get to work (which is normally long days in various parts of the UK), have folks here avoided the dreaded BIK? I also work from home in between so the van has to be parked there, but I've read something about the grey area HMRC say about even if it is 'available' for private use you could be hit? I guess if you keep a good milage log it should cover that issue. We also have a private car we can use for school runs etc.

Anyone done the same? I'd also want to reclaim vat which I know is repayable back once you get rid, but it would go back to the dealer

 

[dubber36]

I'd also want to reclaim vat which I know is repayable back once you get rid, but it would go back to the dealer anyhow.

If you claim the VAT back from the original purchase price, you'll have to issue a VAT invoice to whoever you sell it to whether it be private or trade. As with any business sale, you will be required to include the VAT amount received on your next return.

 

[Mike Dean]

As above the van/car is subject to VAT resale if you claim it on the initial purchase.
Lots of people focus on the BIK because they want to buy a van/car that is not commercial on the V5.
Depending on how you run your business (Number of employees) you can look at the pool van/car book option.
Most accountants will let you run a Kombi as a pool car no questions asked.
I don't think you declare the van/car category on your HMRC submission, its just an asset.

I would strongly suggest discussing with your accountant about what he feels happy with you doing.
You might be pleasantly surprised, I had a full camper as a business pool van, becuase i stayed away working and needed power etc....

 

[z1ts]

I would strongly suggest discussing with your accountant about what he feels happy with you doing.

Totally agree.

Mine I've had to hoick out of my business and run as a car...

Coz thanks to the HMRC vs Coca-Cola fiasco my van which is registered as a van and I will pay van road fund licence on and is MOT'd as a van is now a car according to some dumb-ass judge who clearly hasn't a damn clue about vans or cars and rides a horse to the courthouse I should think

#Rant Off#

 

[Chugga90]

As the sole owner of my limited company which is vat registered.
Around ten years ago the accountant made me sell the Toyota Landcruiser which was used for only business miles and replaced with a van. The van was a Volkswagen t5.1 nearly three years old. This was changed after three years for a new Vito crew van with five seats. However that went a little wrong and the dealer had it back as it was rubbish. A three year old Discovery Commercial was its replacement. This was changed for a t6 Kombi after about two and a half years. All of the vans/crew vans/ Kombi had the vat reclaimed at purchase and repaid on sale. As I run my own vehicle separately from work one and work from the registered business address my work van is not charged for BIK. This is how the accountant has structured it and not any of my doing.
I don’t make the rules and just follow what the accountant has advised. Hopefully they are right?

 

[Aggers]

As the sole owner of my limited company which is vat registered.
Around ten years ago the accountant made me sell the Toyota Landcruiser which was used for only business miles and replaced with a van. The van was a Volkswagen t5.1 nearly three years old. This was changed after three years for a new Vito crew van with five seats. However that went a little wrong and the dealer had it back as it was rubbish. A three year old Discovery Commercial was its replacement. This was changed for a t6 Kombi after about two and a half years. All of the vans/crew vans/ Kombi had the vat reclaimed at purchase and repaid on sale. As I run my own vehicle separately from work one and work from the registered business address my work van is not charged for BIK. This is how the accountant has structured it and not any of my doing.
I don’t make the rules and just follow what the accountant has advised. Hopefully they are right?

I do exactly the same with my 4motion kombi, only difference is I’m a sole trader who’s vat registered.

 

[z1ts]

As the sole owner of my limited company which is vat registered.
Around ten years ago the accountant made me sell the Toyota Landcruiser which was used for only business miles and replaced with a van. The van was a Volkswagen t5.1 nearly three years old. This was changed after three years for a new Vito crew van with five seats. However that went a little wrong and the dealer had it back as it was rubbish. A three year old Discovery Commercial was its replacement. This was changed for a t6 Kombi after about two and a half years. All of the vans/crew vans/ Kombi had the vat reclaimed at purchase and repaid on sale. As I run my own vehicle separately from work one and work from the registered business address my work van is not charged for BIK. This is how the accountant has structured it and not any of my doing.
I don’t make the rules and just follow what the accountant has advised. Hopefully they are right?

Sounds like they are if you solely use it for work - I'd use it privately as well is my issue...

 

[Shaun Witts]

I once bought a motorbike through the company, and used it solely for work over 18 months or so, until I discovered the “available” clause meant that it wasn’t such a good deal as I had expected and it was treated in much the same way as a company car.
Conversely, my panel van doesn’t accrue that same charge, and the BIK is minimal - so long as it doesn’t become “dual purpose” such as a kombi or camper etc.
But I made sure that I had the agreement of my accountant regarding my use of the van.

 

[VanMan48]

Thanks for the replies. I think if I kept a detailed milage log, as well as using our private car for the school runs etc, that it maybe enough, but who knows! I guess if they made it an easy ride everyone would do it.

 

[Shaun Witts]

My worry would always be that the final tax burden, added up over several years, could become quite severe If one became due.