Technically, you can buy any vehicle through your business. So, while it’s possible to buy a campervan through your business, doing so may result in some tax and insurance implications.
At Anthony Jones, we can help you find specialist campervan insurance whether you wish to use your campervan for business reasons, or for leisure. For a free quote, or if you’d just like to discuss your options, call us on 0208 290 9086, or email personal@anythonyjones.com.
Buying a Campervan For Business Use
It’s relatively common for businesses from a range of sectors to acquire campervans for business use. Someone who travels a lot as part of their job might travel in a campervan to save money on accommodation. Contractors may use campervans as mobile offices. And of course, some are converting campervans into mobile food trucks and other pop-up businesses for festivals and events.
If you’re buying a campervan for business use, then why shouldn’t you buy it through your business?
Buying a Campervan Through Your Business – VAT Rules
If you buy a vehicle for your business, you can claim the VAT back – but only if the vehicle’s solely used for business purposes.
HMRC’s rules for what counts as “business use” and what counts as “private use” tend to be stricter for cars than for vans.
What Counts as Business Use or Private Use?
Usually, driving a car to and from the workplace does not count as “business use”. Yet if you buy a van through your business, HMRC may be a little more flexible. They often allow for “insignificant” levels of private use, which can include driving the van home and parking it at your home.
Campervans, though, might be a grey area as they are often thought of as recreational vehicles. So think carefully about how you intend to use the campervan, and consider contacting HMRC to make sure you know where you stand.
Benefit in Kind Taxes for Vans
If a vehicle you buy through your company is used on a personal basis, then it may be subject to benefit in kind (BIK) taxes. The tax rate depends on the vehicle’s CO2 emissions, fuel consumption figures, and its overall value. Read our full guide to BIK rates.
Tax Relief
If you purchase a campervan through your business, then you may be able to claim some tax relief through capital allowances. Like the BIK tax rate, the amount of tax relief you can claim is tied to the vehicle’s CO2 emissions. As campervan’s generally have emission levels in excess of 130g/km, you should be able to deduct 8% of the vehicle’s purchase price from your annual profits.
Campervan Insurance
You will need to get specialist insurance for your campervan, and you will have to be very clear with your insurer about how you intend to use the campervan. Will it be purely for business, or will you occasionally use it for your own holidays? Will members of the public be spending time in your campervan, or will it just be you and your employees? And where will you park the campervan? At home, or at the workplace?
All of this will affect the type of cover you get, and the amount you pay for this cover. Read our full guide to the factors that can affect the cost of campervan cover.
At Anthony Jones, we can help you find specialist campervan insurance whether you wish to use your campervan for business reasons, or for leisure. We can even add comprehensive European breakdown cover to your bespoke campervan insurance policy. For a free quote, or if you’d just like to discuss your options, call us on 0208 290 9086, or email personal@anythonyjones.com.
