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    VAT trap for private use of company vehicles

    In the last few months there’s been little work for two of your employees but they’ve continued to have use of their company vans, including for personal journeys. Does this affect what you...

    Corporation tax - Chargeable profits - Specific income and expense items - Expense items - Leased cars - 3575

    For agreements commencing on or after 1 April 2009 (6 April 2009 for income tax), where a car is leased for trade purposes and: - is registered on or after 1 March 2001; - has a CO2 emission...

    Corporation tax - Capital allowances - General principles - Capital expenditure - Basic rule - 4045

    Notably, the general rule is modified for: a. capital allowances claimed in respect of assets used for the purposes of employment. Here the test is more stringent, and additionally requires that...

    Corporation tax - Capital allowances - Plant and machinery - II. Pools - Allocation of expenditure - Special rate pool - Cars with emissions of over 110g/km - 4585

    Where a car registered on or after 1 March 2001 has an EC certificate of conformity (or UK approval certificate) showing a CO2 emission level of over 110g/km, it is termed a special rate car...

    Corporation tax - Capital allowances - Plant and machinery - III. Separately identified assets - Short life assets - Definition - 5090

    A short life asset can essentially be defined as any asset that is expected to have a working life of less than 8 years from the end of the chargeable period in which the expenditure occurred,...

    Corporation tax - Capital allowances - Plant and machinery - IV. Assets for leasing - Non-long funding leases - Assets leased in the course of a trade - a. UK leases and overseas leases finalised on or after 1 April 2006 - General rules - 5430

    Where a trade consists of, or includes, the leasing of plant and machinery, capital expenditure incurred on the provision of assets for leasing either within the UK or overseas (where the lease...

    Corporation tax - Other income and expenses - Intangible assets - Corporation tax code - 7440

    The regime is, in practice, fairly straightforward as certain debits (expenses), credits (income) and gains recognised in the company accounts for qualifying intangible assets are also allowed...

    Corporation tax - Special situations - Companies with investment business - Management expenses - Disallowable expenses - 16165

    Any expenses which are deductible under any other provision (for example, expenses deductible in computing profits from land and property) are not allowable as management expenses. In addition,...

    Income tax - Employment income - Expenses and benefits - Expenses - Expenses subject to special rules - Travel and subsistence - b. Amount of deduction - Use of employee's own vehicle or bicycle - 27085

    There is a statutory exemption from tax for the approved mileage allowance payments, as shown in the table below, made to an employee in respect of their own vehicle (for the NIC exemption, see ¶43210)....

    Income tax - Employment income - Expenses and benefits - II. Benefits in kind - Non-taxable benefits - Equipment and communication - Provision of equipment and services - 27315

    Subject to certain exceptions, equipment and services provided by an employer will be exempt where: - they are provided at work and the employee's private use is not significant (such as private e-mails...