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personal use of a van

Hi I a new to the discussion forum and have a question about vans use for business and personal use:

I have a friend who is looking to start a business. He wants to get an old van to use for BOTH personal and business use.
Is he better to buy the van in his name or as an asset of the business?
If he buys the van in his name I believe that he can claim 45p per mile for business use in it.
If the business purchases the van; can he pay for each mile he uses personally and if so how much would he need to pay per mile? OR is the only option to pay the yearly fixed scale charge of £3090 + £581 for fuel (if not paid for)
Any help would be appreciated.

Comments

  • kelsmickkelsmick AberdeenRegistered Posts: 89
    Personally for me I would make the decision based on whether he will use the van for mainly personal or business use. At if he will use it more personal then i would suggest he buys it in his name and claims back the miles however if it will be more business then he will get the benefit of capital allowance then just proportion this along with vehicle expenses - insurnace, fuel etc to the business.

    If he knows the cost of the van and a rough guide to how many miles he would be doing in a year then it should be easy to do a calculation and work out which will be better financially for him / the business.
    www.essencebookkeeping.co.uk
    esteward
  • burgburg Experienced Mentor GloucesterModerator, FMAAT, AAT Licensed Accountant Posts: 1,440
    If you take the company car rules for Vans and apply this then there is only a need to apportion if there is significant private use.

    If it is significant then I would apportion all as above.
    Regards,

    Burg
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