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 Post subject: Insurance and 100% AIA!
PostPosted: Tue Aug 08, 2017 6:30 pm 
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Hi all,


Finally all set up to be a taxi driver and operator. Today I finalised a quote for my all electric taxi. £4500. Which isn't bad for anyone in the know. :D

I do have a question though...

Before everything gets moved into my LTD Co. name, and the car is purchased, I plan on claiming 100% Annual Investment Allowance for the car as I will not be using it as a personal car. I am awaiting my accountant to reply to an email, but I thought I would ask here also:

In order to write 100% of the vehicle off I need to prove that the car won't be used for private use, which is fine and easy (showing the insurance policy to HMRC).

The biggest wonderment I have really is that; I've seen some fellow taxi guys putting 100% of the car through their business and then using it for private use like dropping the kids off at school - how do I get away with it? In event of an accident, are they within their rights to claim it was a fare?

Bottom line: I just don't get how it works... it's easy to prove that the car is for business only - say in your insurance policy - but there's no way of physically proving you aren't using it for private use..

Sorry if this doesn't make sense, it just seems like a giant hole in the concept HMRC is trying to uphold...


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PostPosted: Tue Aug 08, 2017 8:50 pm 
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Location: 1066 Country
ThomRhodes wrote:
The biggest wonderment I have really is that; I've seen some fellow taxi guys putting 100% of the car through their business and then using it for private use like dropping the kids off at school - how do I get away with it? In event of an accident, are they within their rights to claim it was a fare?

One way is to only claim for a certain percentage of your fuel, although that will be a bit tricky with an electric car.

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PostPosted: Tue Aug 08, 2017 10:06 pm 
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Sussex wrote:
ThomRhodes wrote:
The biggest wonderment I have really is that; I've seen some fellow taxi guys putting 100% of the car through their business and then using it for private use like dropping the kids off at school - how do I get away with it? In event of an accident, are they within their rights to claim it was a fare?

One way is to only claim for a certain percentage of your fuel, although that will be a bit tricky with an electric car.


Sorry, I didn't mean to put "I" in the questions, haha. However if we roll with the idea of me doing it, are you saying that (with a diesel/petrol car):


If I use the car to go, say to London for the day, then I claim/pay for the fuel cost thus still making it acceptable to put 100% of the car through the business?

Thanks in advance, it's just got me a bit stumped thats all!


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PostPosted: Tue Aug 08, 2017 10:09 pm 
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When I say 100% of the car, I mean the purchase price.


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PostPosted: Wed Aug 09, 2017 9:15 am 
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How about in general say someone wants to drop their own kids off at school or go shopping, what is to stop them booking it in as a proper job? The fare could be a nominal sum.

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PostPosted: Wed Aug 09, 2017 1:04 pm 
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I think I'm going to do that, Grandad. Win win really ey?


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PostPosted: Thu Aug 10, 2017 8:57 am 
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ThomRhodes wrote:
I think I'm going to do that, Grandad. Win win really ey?

Maybe run it past an accountant first.

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