Tax implications for a pick-up truck
 

I'm a sole trader and have an L200 double cab.
If I use it 100% for work purposes can I claim 100% taxable benefits?
Okay, I do a few private miles in it, but then again when I had a normal van I also did private miles in that but it was never questioned because it was a commercial vehicle.
I've been told different things by (a). my accountant and (b). HMRC :rolleyes:
I've been led to believe that because it is capable of carrying passengers it won't be classed as a commercial vehicle (even though it has a payload of 1045kg) therefore I need to log every journey, purpose of that journey, start mileage, finish mileage and private mileage.
Does anyone know anything about this?
Your help is muchly appreciated :thumb:

Mmm Im not too clued up here but with these types of cars, I was told that you have a straight £500 tax cost, i.e. benefit in kind. I did look at a L200, and its due to the £500 tax costs, but I was told the rule was going to change.

If the vehicle was 100% for work use only, then its a pool car, and should be left at work. If that is the case, then the tax implications are different.

Thats what I was told a year or so ago, and it may have changed totally now. In the end, I never went for a company car (im a ltd company), instead use my private car, but claim back the mileage, which works out better.

So if my description is all wishy / washy, company cars, tax stuff, never been something Ive fully understod.

SBK

If your accountant cant explain then its time for a new one!

There are many different options for company cars I was in your exact postion about 2 months ago,you can have many many options.

In the end I chose to buy a new WRX and my company pays for everything except fuel, I pay for the fuel and claim back 18p per mile for any business trips. I had never heard about this option before speaking to my accountants.

As far as I remember you can have a pick up registered for solely businesss use and taking it to and from work everyday would be incidental BUT unless you have very strong circumstances (such as you work on mount snowdon and have to carry 4 members of staff up their every day) then they will want back more tax for it than the £500 per year you normally get charged for having a van.

I'm a sole trader and lease my Scooby. My accountant declares 90% of all the running/lease costs for the car as business. I tried the 100% line but was told that unless I want an easy life from HMRC over everything else I claim, then it is a reasonable figure.
The argument is that as I have a home base then the car is parked there and is invariably going to be used at some stage for private use. HMRC will NOT believe it any other way.

If your cab also sits on your home drive then the same argument goes.
If you were ltd and had an office elsewhere then you could state that the cab is a company vehicle and stays there overnight.

Nick

If you are a sole trader ( like me ), then it isnt a 'company car' as you arent a Ltd Company and there are different rules.

Doesnt matter if it is capable of carrying passengers or not, if you use it in the course of your work then you can still claim costs and depreceation on it. What you would need to to is log the usage, then if it worked out you used it for say 90% business and 10% personal, you can claim 90% of the relevant costs.

It can be registered to the business, and then would show as an asset of the business in your accounts, but as you and the business ( for the purposes of being a sole trader ) are seen as being one entity, then it doesnt make a lot of difference.

My car is claimed for at 50% usage for my business and 50% personal.

The best thing to do its ignore your accountant if he doesnt know what you can claim for, and go with HMRC's advice.