# Motorhome as a company car - tax?



## 108717 (Dec 12, 2007)

Our household currently looks like a car dealer with a van (wife's business) a 2001 BMW 525i touring (wifes car) a 2 year old Zafira SRI (my company car) and our old and trusty Hymer B544 parked round the back. 

Currenty I run a business based in London and commute every couple of weeks from North Yorks for a stint in the big smoke. I usually take the Zafira and stay in a hotel but lately I've had some weekends where I've stayed on for personal stuff and taken the 'van. A concept I'm used to as I used to do that with my caravan. I much prefer the motorhome to a hotel and it also saves money for my company.

My plan is to sell the Zafira, share the BMW as a private car with my wife, then update the MH to something in the region of 20K for a mid to late nineties Hymer through the company and run that as a compay car. (I fully understand the pros and cons of commuting in a motorhome but for the sake of staying on topic without huge explanation, for me it works well so let's not discuss that bit). 

The problem is I can't fathom out how much tax I'd pay on it. It's tricky enough on a car and there are tax calculators which help but as you'd expect motorhomes aren't listed. Likewise, I know the tax is caculated on a sliding scale based on the purchase price, the Co2 and so on. Because the original price of the motorhome was pretty huge will I be paying stupid amounts of tax?

I understand I could finance the 'van myself then charge mileage but this is what I used to do and it cost the company a fortune with the mileage which is why we bought the Zafira. (bear in mind because I own the company its that juggle between robbing yourself via personal tax or robbing your own firm!).

Is there anyone on MHF who is in a similar situation and can give me an indication of what tax they pay or how they juggle it?


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## AberdeenAngus (Jul 26, 2008)

You need to classify your Hymer as your second home.
That way, apparently, you can claim for pretty much everything.....including a moat !


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## JohnsCrossMotorHomes (Jul 21, 2007)

I would suggest you speak to your accountant, as to 'robbing' your company on mileage charges, what does it matter as long as it ends up in your pocket tax free in essence!

Peter


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## bognormike (May 10, 2005)

Jimbo

yes, I do similar, in that the 'van is a business vehicle, and I claim a proportion of the costs (and depreciation) as business use in the business to total miles ratio (you need to keep a detailed log of miles) . For benefit purposes the 'van is not a car, so if you are an employee of a company you don't get the benefit charge (a sole trader like myself would not anyway have the benefit, but have an agreed percentage of the costs deducted as private use).

And as the 'van is not a car, you get depreciation on normal plant & machinery rates, split down for the same private proportion rate as the running costs.

Have a word with your accountant - it may be worth doing 

Oh you can also claim the campsite fees while you're away on buisness, same as hotel bills. :wink:


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## 108717 (Dec 12, 2007)

Peter,
Yes in essence you are correct. However I have a business partner who lives in London and has a bicycle! We've sort of settled down to a good situation where I benefit from the car (then get taxed) but there are adjustments involved. if I start benefiting in personal tax or vice versa, it all gets skewed. One for the accountant if I go that way.

BognorMike, firstly I'm fine with the mileage logs (I have to keep them anyway as my business miles are logged) and I always claim for site fees etc when incurred. However your point about it beign written down in a similar way to plant machinery is very interesting. I'll run this past the accountant. Good advice.

One other non-tax related issue is the current uncertainty over implementation of the London Emission Zone. Much as I'd prefer not to return to a caravan, there's no point having company car if I can't go to the company without parting with stupid sums of money. But that's one for another thread perhaps.


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## Rainbow-Chasers (Sep 2, 2008)

Hymer with petrol/lpg engines appear to be widely available in Germany.

For you means that once registered, will be exempt from congestion charging - just a thought!


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## JohnsCrossMotorHomes (Jul 21, 2007)

jimbo_hippo said:


> Peter,
> Yes in essence you are correct. However I have a business partner who lives in London and has a bicycle! We've sort of settled down to a good situation where I benefit from the car (then get taxed) but there are adjustments involved. if I start benefiting in personal tax or vice versa, it all gets skewed. One for the accountant if I go that way.


Fair comment, I dont have any partners so I dont have that problem!
 
Peter


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## RossMcC (Mar 30, 2009)

Bad news Jimbo, I'm afraid the Revenue consider a motorhome to be a car for company car tax purposes. That means the benefit in kind charge will be based on original list price which I suspect rules out your plans. The Revenue's view is here:

http://www.hmrc.gov.uk/manuals/eimanual/EIM23049.htm

The only tax break you can get with a motorhome is reclaiming the VAT, if you buy a new one.


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## 108717 (Dec 12, 2007)

Cheers Ross,
I couldn't find so that so many thanks. Looks like I might be going back to tugging with the Zafira or back in the hotel for parking nightmares, funny milk and one night for a week on a campsite. I'd have a company caravan though. The Hymer can live on for my use.

The other alternatuive is trading current Hymer for somethng else and charging back mileage. I'll do the sums and speak to the accountant.

Thanks to all for your input. You found stuff I didn't find despite my best efforts.

J


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## bognormike (May 10, 2005)

looks like that commisioners' case knocks out the "company" motorhome, but as a sole trader or partnership it's OK, as the "proprtion" rules apply.


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## 108717 (Dec 12, 2007)

Yeah Mike. It's all so different with benefits and drawbacks to both. I'm a director of a Ltd. Co. and my wife is a sole trader so I'm familiar with most of it!

Thanks for your input though.


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## bonnieboo (Apr 27, 2009)

How about siting a caravan on a site all year round, near to where youwork ,at least you wont have to stay in a hotel. we went on a site recently and 4 members of a family site there caravans next to each other for 10 months of the year, they are stored for the couple of months on the same site and then pitched back up for the 10 months again. 
Just a thought
Jakki


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## RossMcC (Mar 30, 2009)

Can't you run it through your wife's sole trade business, then claim mileage if you use it for your company?


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## 129052 (Oct 26, 2009)

*Campervan as company car (not motorhome)*

I have looked at getting a campervan as my company car. For example, a VW T5 or Mercedes Vito should be classified as a van and any private use taxed accordingly.
The key difference is that a campervan based on a standard van meets the normal tax requirements for a van. 
Care is needed when it comes to conversations so that the cost of the conversation is not considered an 'accessory' as these are taked at cost.
I would be interested in hearing from anyone that has acquired a compervan as a company car.


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## hailman (Oct 26, 2009)

My accountant told me that if I bought the motorhome through the company, as a company car, I as director would pay a large amount of tax based on the van`s new price, as it would be seen as `benefit in kind`, not what I paid for it as a used vehicle. As I detest paying tax as much as the next man, the only solution he could offer was to buy it as a private individual and claim business mileage.


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## 129052 (Oct 26, 2009)

Hi Hailman,
Thanks for your response. I believe there is a key difference between a motorhome and a campervan, where the former is treated by the HMRC as a 'car' for the purpose of company taxation and the latter is a van.
Perhaps this is something that you want to check with your accountant again, pointing out this difference.
Cheers, Rocky66


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## bigbazza (Mar 6, 2008)

I was taxed heavily with my company car so I bought it off them and claimed 40p per mile which is the tax free amount payable.
I was financially much better off as I was paying tax on private petrol allowance far in excess of what I was using..
I don't know if the sum's are in your favour with a more expensive to run motorhome :?:


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## ICDSUN (Oct 10, 2006)

Hi

You can I believe pay a higher rate per mile than the AMAP rate of 40p a mile, and just pay tax+NI on the over payment, no BIK due
Also check out the rate for cycling to work 20p a mile I believe, and also passengers @ 5p a mile if travelling with you, every little helps :lol: 

Your accountant should be able to advise best options for your circumstances, if not get a new one.

Chris


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