Entrepreneurs do not always have enough funds to buy all the necessary assets when starting a business, and at least at the beginning of the business, the entrepreneur uses his own car, so the question arises at every step, what expenses can be covered for the maintenance of such a car borrowed from a private individual!?
If a company uses a car owned by a natural person under a loan agreement for less than 15 days in one calendar month and does not pay company car tax on the vehicle, then the company must keep fuel records during the loan period to justify the use of fuel for business purposes (e.g., with waypoints or route sheets) in accordance with the procedures specified in the documents of the accounting organization.
However, the company may include in its costs only those operating and maintenance costs of the borrowed vehicle that are directly related to the economic activity during the period when the particular vehicle was borrowed.
We suggest you to talk to your accountant before starting the maintenance of a borrowed car!
If you do not have your own accountant or need day-to-day support, or such advice and a full cycle of financial accounting, you have missed these or other accounting issues due to busy schedule and it is important to you, feel free to contact us right here, on our website and receive favorable conditions for starting cooperation with our accounting services office!
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