Cars for Partners - Examining the Options
Article Abstract:
A partnership should consider the tax consequence as well as other costs in determining whether or not to provide a car for partners. The Finance Act of 1976 in the United Kingdom requires tax on benefits of car availability, as income tax. However, for partnerships or the self- employed, all expenditures have to be wholly for business purposes. Therefore, the care is not available for private use as it would be allowed in other cases. Where mileage is low, it would be advantageous to have a partner use his own car and charge mileage expenses plus overhead expenses. When the firm provides the car, accurate mileage records should be kept. The proportion of business miles should be computed and the firm held responsible for that percentage of the expense. Availability of cash and cash flow needs should be the basic determinants of choosing to buy, lease or hire-purchase the car. Each of these is described. Equity can be handled by providing car allowances and allowing the partner to choose.
Publication Name: The Accountant
Subject: Business
ISSN: 0001-4710
Year: 1983
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Liability Insurance for Company, Partnership and Trust Officers
Article Abstract:
Increasing need for liability insurance for officers and boards of directors in the United Kingdom has been demonstrated. As a result of decisions of the court, there is genuine risk that a director can be sued, jointly or severally, and be held liable. The coverage available generally is purchased by the company contributing the larger share providing blanket coverage for the entire list of officers and directors in an executive capacity. There are exclusions such as claims for pollution or payment of fines. Outside the United States, minimum indemnity levels are approximately 500,000 pounds to approximately 5 million pounds. Insurance to protect trustees and other officers is beginning to attract increasing interest.
Publication Name: The Accountant
Subject: Business
ISSN: 0001-4710
Year: 1983
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