Ltd Co, private car

Hello everyone,
I have a client who incorporated last year. As a sole trader, the director put all her car expenses through her business and we then disallowed a private proportion. As a director, my client has continued to do this rather than claim mileage - it is her year-end at the end of March and I have just checked her book-keeper's postings in Sage. Maintenance and repairs have been paid for out of the company bank account. Given that the car is privately-owned by the director can we include the car expenses (insurance, maintenance, tax etc) as allowable expenses of the company, as you would with a company car? Presumably this would give rise to a benefit in kind for the director and Class 1A NICs for the company, but my question is really whether it is ok to treat the expenses in this way. She earns more than £8.5k so a P11d would be required.
Any advice gratefully received!
Hollysan
I have a client who incorporated last year. As a sole trader, the director put all her car expenses through her business and we then disallowed a private proportion. As a director, my client has continued to do this rather than claim mileage - it is her year-end at the end of March and I have just checked her book-keeper's postings in Sage. Maintenance and repairs have been paid for out of the company bank account. Given that the car is privately-owned by the director can we include the car expenses (insurance, maintenance, tax etc) as allowable expenses of the company, as you would with a company car? Presumably this would give rise to a benefit in kind for the director and Class 1A NICs for the company, but my question is really whether it is ok to treat the expenses in this way. She earns more than £8.5k so a P11d would be required.
Any advice gratefully received!
Hollysan
0
Comments
Despite the car remaining in her name , I would suggest to your client HMRC would look to tax it as a company car if you allowed the insurance etc through as a business expense.
Thanks,
Hollysan
If she can't be bothered to calculate her mileage then show her the potential tax and NI due if you treat it as a company car. That may make her change her mind.
I can't think of any other ways around it.