Fuel BIK commercial Vehicles

Poodle

Hi

I have a client who would like to incorporate his business.

At present he has a double cab pick up with a payload in excess of 1 tonne.

This vehicle is sign written and is only used for private use and so he was able to recover the input VAT on the purchase and on running costs.

If he incorporates into a one director/one owner close company then all of the assets, including the van will go into the name of the company.

I know that he will have to pay BIK £3,000 on the vehicle since it is parked at home and even though he does not, he will have the ability to use the vehicle for private use.

However, will he also get clobbered for a fuel allowance BIK as well under the same 'ability' rule?

slackda

http://www.hmrc.gov.uk/vans/vans-info.pdf

Shouldn't be clobbered witht he £500 charge.. unless he uses it for private use, keep complete milage records to prove that all milege is 100% business only.

deanshepherd

In your first sentence you state that he uses it only for private use and then in your last sentence you suggest he never uses it privately.

Assuming it is predominantly for business use then there will be no van benefit or fuel benefit. Bizarrely, driving to and from work in a van does not constitute private use. You are also allowed to keep the vehicle at home and use it for 'occasional' personal journeys without it being subject to a benefit.

If he does use it privately on a fairly regular basis then he will have a van benefit and if the employer pays for all the fuel (or at least if he does not reimburse the company for private fuel) then he will also have a fuel benefit.

Poodle

deanshepherd wrote: »

In your first sentence you state that he uses it only for private use and then in your last sentence you suggest he never uses it privately.

Duh... the vehicle is only ever used for business, but since this guy works from home and the vehicle is parked at home then I am sure that he does get caught with the vehicle being "available".

It is the fuel that I had a question mark over

deanshepherd

"Availability" only applies to cars, not commercial vehicles.

Poodle

Thank you all.

Must be the age thing I just seem to have trouble remembering things now and getting my head around the most basic of subjects....

PS No comment Robert