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  • 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

    Gary Lemon

    Our expert Gary answered...

    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.

    Question asked 25/04/2012
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