We run plumbing & heating company and want to buy small car for private and business usage and also have advertising display.My question is what would be the best way to account for the car ? Last question does anyone knows if private car with adds on is treated as business for insurance purposes ? Sorry so many questions
If the company is supplying the car for private use it will be accompany car, therefore whoever is provided with the car will have a P11d reportable benefit in kind (BIK) which would mean a further personal tax charge and a company NI charge. If fuel is also provided it would add to the BIK. If bought personally you could charge mileage at 45p (first 10,000 miles , 25p thereafter) to the company with no BIK charge. If you could prove this was a pool car then that would mean no reportable BIK.
I think if you are using car for business you should tell insurance company anyway, I doubt it will add much to the premium.
