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bigduckontax
bigduckontax, Accountant
Category: Tax
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Experience:  FCCA FCMA CGMA ACIS
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As a limited company can we buy a car which we will have sign

Customer Question

As a limited company can we buy a car which we will have sign written in the company name etc. but used by a local sports professional for their use by our support. If so are there any penalties, implications etc. etc. please.
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
I am Keith, one of the experts on Just Answer, and happy to be able to respond to your question. Providing the vehicle is used wholly and exclusively by the sports professional in the execution of his duties then there should be no problem. However, if private usage is involved, and that includes travel between his or her residence and their normal place of duty, then this becomes a benefit in kind and taxable on the said professional. On your end of the year return, the P11d such private mileage would have to be declared. I do hope that my reply has been of assistance.
Customer: replied 2 years ago.

Many thanks. My issue is not with their (the sports persons) personal liabilities but ours as a company in a) buying the car and b) having it sign written etc. Can we write it down in whole being a car loaned out in this way and liveried up in our company details?

Thanks

Expert:  bigduckontax replied 2 years ago.

Oh yes, my inclanation would be to debit it to the advertising account. However, you must take cogniscence of the use of the vehicle as payroll wise it could be a company reporting responsibility and you might find the PAYE authorities breathing down your neck.

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Expert:  bigduckontax replied 2 years ago.
Thank you for your support.