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bigduckontax, Accountant
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I am in the process of buying a motorcycle retail business

Customer Question

Hi,
I am in the process of buying a motorcycle retail business which is 100 miles from my home (until I move nearer). If I buy a motorhome to travel to and from the business and stay onsite during the week (saving hotel costs) and also use it to collect and deliver bikes to clients, can I purchase it through the business or will it still be classed as a 'perk'?
Thank you!
Mike
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello Mile, I am Keith, one of the experts on Just Answer, and pleased to be able to assist you with your question. In my opinion this is a perfectly proper business expense providing you keep a record of private and business mileage and usage and only set the business element against your trading and capital allowance (CA) accounts. I have had two clients who did precisely this and the Inland Revenue, as they were then never batted an eyelid. Also remember that a camper van is classed as a van for capital allowance purposes not a motor car. This will enable you to reclaim all the business use capital costs through the medium of CAs. If you are just starting self employment you must register with your tax office and they will arrange for the necessary forms for self assessment to be sent out at the end of each tax year. I do hope that I have been able to set your mind at rest on this matter.
Customer: replied 1 year ago.

Hi Keith,

Many thanks for that. The company is a limited company and I am a director so not using self-assessment. Will this change the situation please?

Thanks

Expert:  bigduckontax replied 1 year ago.

No. the transaction can be put through the company's books if desired. A word of caution, please remember that a director is an employee per se and must have any remuneration paid under PAYE arrangements.

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Customer: replied 1 year ago.
Hi Keith,
When you say 'remuneration' do you mean my salary or expenses arising from use of the motorhome?
As the MH will be a company asset, I assume I can claim all fuel etc. expenses for business use or will it still fall under the .45p per mile rule as for personally owned cars?
Thanks for your help, this all good news!
Expert:  bigduckontax replied 1 year ago.
Salary!
You could claim actuals or use the 45p rough and ready twist of the spoon to stop the treacle running off so to speak. The 45p per mile [25p over 10000 miles in any one tax year] is designed to cover both capital and running costs so as far as the MH is concerned if you use this method, as the majority of taxpayers do, you can forget about CAs for the MH.
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3103
Experience: FCCA FCMA CGMA ACIS
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Expert:  bigduckontax replied 1 year ago.
Thank you for your support.
Customer: replied 1 year ago.

Hi Keith,

Thank you for your help on this, very informative in helping our decision.

My apologies for the delay in rating your service. Our broadband crashed on Saturday and then I was away until last night.

Best wishes,

Mike

Expert:  bigduckontax replied 1 year ago.
Delighted to have been of assistance, Mike.

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