Do you have a journal entry of the affect of personal use company car (PUCC) in quickbooks I'm confused as to what happens when it hits the financials?

Hi @carolcurrier101 let me offer some insight. When a company car is used for personal use that use becomes non deductible for business purposes. If you use a flat mileage deduction rather than actual expenses it becomes relatively easy to calculate percentage of miles driven personal vs business but even that calculation can be used against actual vehicle expense to reduce what the business can deduct.

 

Another consideration is that providing a car to an employee for their personal use may be a taxable fringe benefit and would have to be included in their gross pay.

 

As complicated as it can be I echo the suggestion you discuss this with an accountant

In the UK it depends on whether you're operating as a sole trade/partnership or a limited company. In a sole trade/partnership you should include the whole cost and then make an addback on a tax computation (hopefully something your accountant is doing). This addback is usually a % based amount. I do see some accounts where the addback has been made in the accounts themselves, this would be credit motor expenses, debit drawings. If you're operating a limited company then the information is a bit irrelevent for an accouting purpose but if there are vehicles with personal use then this triggers benefits in kind. I try to encourage most small limited company owners to own their own vehicles personally and claim business mileage instead, 45p for the first 10,000, 25p thereafter.