Can an employee pay part of the purchase of a company vehicle
Thanks for the question. Please clarify whether you are concerned with the tax implications of having an employee contributing towards company vehicle. OR can you add more details to your question so that i can help you better.Thanks
who owns the vehicle who insures the vehicle and the tax implications for the company
I guess you are in the UK - the UK rules are different from say USA, we don't really have a "title" to the car that is separate from the registration in the UKIn the UK the vehicle can only be registered to one person, or to a company - it cannot be registered in joint names. Similarly, the insurance policy is likely to be in one name only (should be the same as on the registration) with the second as a named driver. However as a remedy you could draw up a contract between you and the company and both can sign and keep the record, stating exactly how much of the purchase and running costs each is going to pay. Bear in mind that you may not both use the car equally, which could lead to arguments later (if you have agreed to pay servicing costs 50/50, but one of you had racked up 70% of the miles since the last service, for example), so you'll have to think of all these in your agreement.The tax implications again depend on what you have document as the company's share, share of costs etc. Depending on how you use the car for private or business purposes the tax implications may be complicated. However the general principle is car costs relating to the business activities are deductible for tax purposes. Hence you may need to split the costs accordingly and the business trips costs of the car are allowed to be deducted for tax purposes.JACUSTOMER-5z6z37qi-41095.7850680208