Using personal car for company business

[Marvo]

I (and other members of staff) frequently use my own personally owned car (Honda City - if that makes any difference) for company business. The company's crap accounting service people tell me that I cannot get my expenses (petrol, service, mileage??? etc.) repaid to me. Please could someone who knows the Thai system better than me please advise...

1) How do I recover the mileage expenses from the company? (The UK accounting system has a scale of maximum allowable mileage claim rates)

2) How does the company show those expense payments on its books? (UK accounting system needs a signed declaration from the claimant)

3) Are such company payments to staff (reimbursing these expenses) tax-deductible, as they are in the UK accounting system?

Thanks in advance.

[harrry]

Simple answer. Stop using your car for company business. THey can hire one if needed.

[Marvo]

Simple answer. Stop using your car for company business. THey can hire one if needed.

OK then..

Can the company hire my car from me?

And is a private individual, under accounting law, able to provide the company with the necessary receipts etc. without being personally liable for tax in the "rental"?

I and my wife are directors of the (very small) company, but I don't want to pay the income tax on the extra salary I have to draw in order to pay for car/petrol expenses incurred on legit company business which should be tax deductible in my view.

Maybe I should sell the car to the company?

Edited August 6, 2013 by Marvo

[harrry]

My guess is that that the company would have a quick rethink and find that it is quite possible for you to use your own car. Of course if you use theirs you should ensure you have full insurance for everything not just the PorRorBor. Driving is dangerous.

Edited August 6, 2013 by harrry

[bangkockney]

Move the car into your company.

You will need tax invoices for all transactions. So keep business cards in the car and ask for a full receipt made out to your company when you fill up etc.

Speak to your accountant for the full details (or find a better one!)

[harrry]

Move the car into your company.

You will need tax invoices for all transactions. So keep business cards in the car and ask for a full receipt made out to your company when you fill up etc.

Speak to your accountant for the full details (or find a better one!)

No do not. A company owned vehicle can apparently not be transfered to a private person onl another company. Check it out,.

[mcyachty]

There is a guideline of what can re reimbursed by the Revenue Department. I have a Mitsubishi Strada Diesel and my office has informed me I can only claim 5.50 Baht per kilometer as this is the amount the revenue dept will allow. Any more and I have to pay income tax on it.

[mcyachty]

Have a look at http://www.samuiforsale.com/law-texts/the-thailand-revenue-code.html under section 42, paragraph (3) which covers traveling expenses.

[Marvo]

Have a look at http://www.samuiforsale.com/law-texts/the-thailand-revenue-code.html under section 42, paragraph (3) which covers traveling expenses.

Thanks for that pointer mcyachty.

So I can now see that the employee is not liable for income tax on the legitimate travelling expenses paid by the company.

The next question is: How is that payment by the company treated in the company accounts, as far as tax deductible company expenses go, and what kind of "receipt" from the employee will the revenue dept. need?

And the next question... Where can I find the Revenue's table of allowable travel/mileage/kilometer-age expenses?

Cheers.

Edited August 7, 2013 by Marvo

[mcyachty]

Hi Marvo,

Sorry I can't answer but I will ask accounts dept for you.

[GiantFan]

Perhaps your accountant is confusing VAT refund and expense. My car is a Nissan NV with business plates. I can claim petrol / repair / etc... as expenses on the company but no VAT. It was explained to me that only pick-up trucks / vans / etc... could be categorized as company vehicles and get the VAT invoice.