Commercial vehicle on personal name used for business only

Tanmaya

Hi, I have a commercial vehicle on hire purchase under my personal name. I also have a limited company for courier business.

I would like to claim the cost of hire purchase, interest payment, insurance ( all three under my personal name) and fuel expenses from my business.

I must mention that the van is solely used for business use and it is phisically impractical to use the van for personal use due to the size and make of the van. That is 3.5t lotun box van.

I have heard two very broad answers from accountants that I have visited. One of them that I currently use is saying I can only claim mileage expense from the business. The other two are saying I can claim the expenses I mentioned above as a reimbursement.

I am not sure which is true and which lacks the knowledge now.

I was hoping I could get some light on this by asking this here.

Lmarbell

Evening,

The answers you have been given are based mainly on that accountants personal preference more than anything else, however personal expenses can be tricky when you are a director.

From my knowledge and experience in practice you have Option A and the easiest option for a lot of people and accountants is to claim mileage for using the personal van for business purposes, however this is not always beneficial and with the mileage you will do, you won't reclaim the full costs to you. Option B if you are leasing a van under your own name solely for the purpose of your limited company, then you can charge those costs to the limited company and reclaim full value.

I would suggest having any direct debits set up to come out of the limited company bank account and make sure you keep clear records showing the costs you incur on the business's behalf. I would also suggest looking to put the lease into the Ltd name in the future, these two things do make business life much easier. Reclaiming costs you've incurred previously, as long as you can evidence the costs and a clear business link can be established, I can't see why your accountant would refuse you.

I hope this helps.