Your Questions Answered

<<Back to Q & A

25 April, 2012

If I lease a Pickup truck, Ford Ranger Thunder for example and offer it as a company vehicle with fuel paid by the company to an employee (earning over £8500) what will be the tax implications? Would I be able to reclaim the VAT as a business expenses How would the P11D benefits be calculated? thanks in advance

Hello David Thank you for your email. If I lease a Pickup truck, Ford Ranger Thunder for example and offer it as a company vehicle with fuel paid by the company to an employee (earning over £8500) what will be the tax implications? The tax benefit on the vehicle is £3,000 per annum and £550 for private fuel. If the driver is a 40% tax payer the actual cost per annum is £1,420 (40% of £3,550). Would I be able to reclaim the VAT as a business expenses? Yes, but as with all goods and services obtained by a business, you cannot reclaim VAT on private usage. Therefore, if the vehicle is used say 75% business and 25% private, then only 75% of the VAT is reclaimable (this is dealt with under the 50% disallowance rule for cars). How would the P11D benefits be calculated? Please see above, the £3,000 and £550 are the BIK (Benefit in Kind). These details are subject to change at any time by HMRC. If I can be of any further help David, please get in touch.

Comments

There are currently no comments. Why not be the first?

Add Your Comments

Fields marked with a * are required.

Ask Andy a Question

About Andy

Andy has worked in the motor trade and more specifically been involved in supplying finance for vehicles, coming up to 20 years. He started his own business www.autorama.co.uk in 2004 selling used vehicles before expanding the company via its comercial vehcle leasing business in 2006. Back then the leasing business was pretty much just him, a laptop and a portakabin. Now just six years later Autorama through it's online brands vanarama.co.uk and pickuptrucksdirect.co.uk is recognised as the largest independant commercial vehicle leasing broker in the UK.

The last six years have seen continued growth and resulted in the company now employing 32 staff. Being able to offer some of the most competative rates in the country as well as industry leading levels of customer service have played a big part in our growth. However it is our ability and moreover our expert knowledge in this sector that has allowed us to best advise and therefor better serve our customers.

Every customers needs are different and there are so many options available that it's easy to see why people get confused by either inaccurate or simply poor advice. We are here to help and advise you so whatever your query, no matter how big or small your business or how complicated your situation seems. let us answer your van leasing questions.

Latest Questions

Thinking of trading in my Fiesta Sportvan, on reading the new brochure the dealer sent me it says that most of the fiesta...

Hi Tony, firstly thanks for the question, secondly apologies for taking so long to get back to you . It doesn't happen...

View | Comments (0)

Previous Q&As

View all Q & A

Click here to ask Andy your Question

Ask Andy a Question

Fields marked with a * are required.