SuperchargedLlama Hello,
Ah, yes - sorry for the confusion. That was a draft I’d entered as pending until my chat with an accountant to check if it was correct and indeed it is the best way to do this. However, you won’t be able to claim any of this multi-car policy as a company expense due to having both company and personal vehicles in the same plan.
Unfortunately, this then falls into what’s called “duality of purpose” and per HMRC rules this isn’t then “wholly and exclusively” for business purposes, which all expenses must meet in order to be claimed as legitimate expenses.
If the company took out an insurance policy for the company vehicle alone then that would be deemed allowable and can be expenses through the company.
The personal vehicle, however, would need it’s own policy separate from the company’s which would be paid for by you personally.
As you’ve merged the two together, you can’t directly attribute a cost to the company and it doesn’t then qualify as a cost incurred wholly and exclusively for the company.
With the above in mind, my recommendation still remains in terms of listing the outgoing as a withdrawal and then creating a bank deposit to offset the directors loan account.
I hope this makes sense and helps, and please do let me know if you have any further questions.
