Vehicle Costs

Hi, The owner of a company has his own private car which is not under as an asset of the company but the car is being used for business purposes also. Can fuel and other vehicle costs be recorded as an expenses? if so, that means car should also be considered as an asset in balance sheet? looking forward for your kind and valuable comments, thanks!

Comments

  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,436
    Hi sajjad, are you the owner of the company or their accountant?
  • sajjadsajjad Registered Posts: 4
    Hi Marie, I am accountant
  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,436
    Either claim business mileage at the approved HMRC rates (45p and 25p) so no BIK arises (and no other motoring costs go into the accounts) or introduce the car as an asset on the balance sheet and claim motor costs but this results in a car benefit reportable on owner's P11D (and income tax and class 1 A NIC). If fuel is also paid again a fue benefit arises and business mileage may be claimed at the HMRC advisory fuel rate. I have assumed the owner is also a director.
    Neillaw
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