Can I do business insurance while I am self employed?
Hi,
So I just passed my driving test and looking at the insurance its around £2200 for a Corsa!
.. I was wondering if I can do business car insurance while I am self employed? I cut hair of my friends and family and get paid by them therefore it counts as a part time job right? I would use the car to travel to and from their houses as most of the time I have to go there to cut their hair.. Could I do business insurance or am I breaking the rules? Business insurance on a car for me is around £1300 for a Corsa but it can get cheaper than that.. What do you guys think? I have included in the insurance the fact that I would be using the car for personal use as well as business use!!!! When picking business use on the website (moneysupermarket) the website asks me how much personal miles I will do as well as business therefore I am guessing this would be fine right?
Thank you.
So I just passed my driving test and looking at the insurance its around £2200 for a Corsa!
.. I was wondering if I can do business car insurance while I am self employed? I cut hair of my friends and family and get paid by them therefore it counts as a part time job right? I would use the car to travel to and from their houses as most of the time I have to go there to cut their hair.. Could I do business insurance or am I breaking the rules? Business insurance on a car for me is around £1300 for a Corsa but it can get cheaper than that.. What do you guys think? I have included in the insurance the fact that I would be using the car for personal use as well as business use!!!! When picking business use on the website (moneysupermarket) the website asks me how much personal miles I will do as well as business therefore I am guessing this would be fine right?Thank you.
Scroll to see replies
My corsa was not that expensive, try confused.com!
Afaik any business use requires business insurance.
i watched a TV show where a cop stopped a bloke who had some boxes on his back seat that contained tea. The insurance was checked and the car only had private insurance so the car was seized. Kind of OTT in my book as the guy said that he had a fleet of vans but was just picking up some samples. ( ok they all say that)
i watched a TV show where a cop stopped a bloke who had some boxes on his back seat that contained tea. The insurance was checked and the car only had private insurance so the car was seized. Kind of OTT in my book as the guy said that he had a fleet of vans but was just picking up some samples. ( ok they all say that)
Original post by domonict
Afaik any business use requires business insurance.
i watched a TV show where a cop stopped a bloke who had some boxes on his back seat that contained tea. The insurance was checked and the car only had private insurance so the car was seized. Kind of OTT in my book as the guy said that he had a fleet of vans but was just picking up some samples. ( ok they all say that)
i watched a TV show where a cop stopped a bloke who had some boxes on his back seat that contained tea. The insurance was checked and the car only had private insurance so the car was seized. Kind of OTT in my book as the guy said that he had a fleet of vans but was just picking up some samples. ( ok they all say that)
So does this mean I am allowed to do business insurance ? It would be a benefit for me seeing as it only costs £1777! Obviously there must be some more cheaper than that but that is a good enough price for me.. It is not like I am lying because I do actually cut hair as my own job and get paid therefore it does class as a part time job so I should be okay with doing business insurance then? I will always keep my hair equipment in the car therefore if something does happen, I can just say I was going to my clients house to cut their hair? I have included personal miles in there too so its not ONLY business use ... Its personal as well as business because the moneysupermarket website does ask me about personal use as well as business...
Original post by hussnainh8
So does this mean I am allowed to do business insurance ? It would be a benefit for me seeing as it only costs £1777! Obviously there must be some more cheaper than that but that is a good enough price for me.. It is not like I am lying because I do actually cut hair as my own job and get paid therefore it does class as a part time job so I should be okay with doing business insurance then? I will always keep my hair equipment in the car therefore if something does happen, I can just say I was going to my clients house to cut their hair? I have included personal miles in there too so its not ONLY business use ... Its personal as well as business because the moneysupermarket website does ask me about personal use as well as business...
Perhaps you ought to ask the insurance company yourself? After all if you can't convince them now that your cover is sound, there'll be hell to pay when you still can't convince them after being involved in an accident. Give them a ring, explain your circumstances as clearly as you can, and ask if your quote reference will cover your use. It sounds to me like it'll be fine, but if there's any doubt, you ought to check.
Original post by Dez
Perhaps you ought to ask the insurance company yourself? After all if you can't convince them now that your cover is sound, there'll be hell to pay when you still can't convince them after being involved in an accident. Give them a ring, explain your circumstances as clearly as you can, and ask if your quote reference will cover your use. It sounds to me like it'll be fine, but if there's any doubt, you ought to check.
The thing is I have not bought the car yet therefore I wouldn't want to just ring and ask for quotes and then end up saying "I was just checking if it is possible".. That is why I asked on here before buying a car and getting it insured.
as to the conditions that an insurance provider will raise, I dunno.
you need to ask. People ring up all the time - that's what they are for.
I would say something like
" I am employed as a hairdresser at a salon but also want to make sure that I am covered as I want to start my own part time mobile business and expand it"
( assuming that it's true)
you need to ask. People ring up all the time - that's what they are for.
I would say something like
" I am employed as a hairdresser at a salon but also want to make sure that I am covered as I want to start my own part time mobile business and expand it"
( assuming that it's true)
Original post by domonict
as to the conditions that an insurance provider will raise, I dunno.
you need to ask. People ring up all the time - that's what they are for.
I would say something like
" I am employed as a hairdresser at a salon but also want to make sure that I am covered as I want to start my own part time mobile business and expand it"
( assuming that it's true)
you need to ask. People ring up all the time - that's what they are for.
I would say something like
" I am employed as a hairdresser at a salon but also want to make sure that I am covered as I want to start my own part time mobile business and expand it"
( assuming that it's true)
I wouldnt say I am employed as a hairdresser at a salon because I am not. I just learnt how to cut hair and have started cutting hair for friends/family and even friends of friends and get paid by all of them therefore it is pretty much my part time job.. I am not employed by a company therefore I class it as self employed.. But I guess I will have to ring them up and ask then.
Remember to make sure that you have coverage for non-business use too. You won't be able to use it for leisure unless you specifically get cover for that too. But I'd imagine it could be possible as most business insurance constitutes driving for reward. If you're earning money, then this should constitute exactly that. Business insurance does not come cheap though, so be prepared for a potential shock.
Original post by monkeyman1990
Remember to make sure that you have coverage for non-business use too. You won't be able to use it for leisure unless you specifically get cover for that too. But I'd imagine it could be possible as most business insurance constitutes driving for reward. If you're earning money, then this should constitute exactly that. Business insurance does not come cheap though, so be prepared for a potential shock.
Yes I have included personal use where I wrote I would be doing around 7500 miles personal and 2500 business miles in total its 10000 miles and I got a quote for £1300 which is A LOT cheaper than the standard policy type. I would ring an insurance company but there numbers start with 087 and those charge my house phone!
That is why I am stuck on asking here for advice on the question.That's a much more reasonable price in my opinion! You could always email them and ask for them to give you a call back? It's worth a shot.
Are you registered as a trading company? Do you pay business taxes? If not, then no, you're not eligible.
Original post by monkeyman1990
That's a much more reasonable price in my opinion! You could always email them and ask for them to give you a call back? It's worth a shot.
Yep will definately do that. Thanks for the help!
Original post by ToastyCoke
Are you registered as a trading company? Do you pay business taxes? If not, then no, you're not eligible.
I saw a similar scenario where a lady said she was a "Carer" and had to travel to different homes to care for her clients therefore she was told by an insurance company that she would need business insurance for her car... Maybe my scenario would be similar? I am looking to find cheap insurance but at the same time not trying to take the risk of having an accident and not being able to claim therefore that is why I ask this now before it is too late aha
Original post by hussnainh8
Yep will definately do that. Thanks for the help!
No problem, let us know the outcome
Are you registered as a trading company? Do you pay business taxes? If not, then no, you're not eligible.
Business use can technically be used for the likes of delivering pizzas, so therefore it would be fine in the eyes of the insurance companies.
The tax man would ask questions if all is not above board on the business tax front though...
I saw a similar scenario where a lady said she was a "Carer" and had to travel to different homes to care for her clients therefore she was told by an insurance company that she would need business insurance for her car... Maybe my scenario would be similar?
That would be exactly right.
Original post by monkeyman1990
No problem, let us know the outcome
Business use can technically be used for the likes of delivering pizzas, so therefore it would be fine in the eyes of the insurance companies.
The tax man would ask questions if all is not above board on the business tax front though...
That would be exactly right.
Business use can technically be used for the likes of delivering pizzas, so therefore it would be fine in the eyes of the insurance companies.
The tax man would ask questions if all is not above board on the business tax front though...
That would be exactly right.
Of course it can. But you're delivering for a REGISTERED business. You will have a payroll number and tax code etc. You're on the tax system.
Original post by hussnainh8
I saw a similar scenario where a lady said she was a "Carer" and had to travel to different homes to care for her clients therefore she was told by an insurance company that she would need business insurance for her car... Maybe my scenario would be similar? I am looking to find cheap insurance but at the same time not trying to take the risk of having an accident and not being able to claim therefore that is why I ask this now before it is too late aha
Again, see above. This care status would be backed up by her claiming Carer's allowance or proof of employment by a charity/agency; again registered as a charity or a business and paying taxes.
Unless you are a VAT registered business, with a financial system in place such as payroll numbers and tax paperwork; you are not eligible.
It's not as simple as saying "I go around to my mums house once a week and take her in her shopping. She pays me a fiver for this and so I'm making money and I'm a business." You physically need to be a business in the governments eyes; it's not just a case of ticking a box on your car insurance application. Oh and it's not just a case of having an accident and not being able to claim; technically you'd be driving without valid insurance; ergo, driving with no insurance.
(edited 8 years ago)
Original post by ToastyCoke
Of course it can. But you're delivering for a REGISTERED business. You will have a payroll number and tax code etc. You're on the tax system.
Again, see above. This care status would be backed up by her claiming Carer's allowance or proof of employment by a charity/agency; again registered as a charity or a business and paying taxes.
Unless you are a VAT registered business, with a financial system in place such as payroll numbers and tax paperwork; you are not eligible.
It's not as simple as saying "I go around to my mums house once a week and take her in her shopping. She pays me a fiver for this and so I'm making money and I'm a business." You physically need to be a business in the governments eyes; it's not just a case of ticking a box on your car insurance application. Oh and it's not just a case of having an accident and not being able to claim; technically you'd be driving without valid insurance; ergo, driving with no insurance.
Again, see above. This care status would be backed up by her claiming Carer's allowance or proof of employment by a charity/agency; again registered as a charity or a business and paying taxes.
Unless you are a VAT registered business, with a financial system in place such as payroll numbers and tax paperwork; you are not eligible.
It's not as simple as saying "I go around to my mums house once a week and take her in her shopping. She pays me a fiver for this and so I'm making money and I'm a business." You physically need to be a business in the governments eyes; it's not just a case of ticking a box on your car insurance application. Oh and it's not just a case of having an accident and not being able to claim; technically you'd be driving without valid insurance; ergo, driving with no insurance.
Oh okay then.. I guess I can kiss the business insurance good bye lol .. Back to looking for social and commuting insurance.. Any advice on a cheap car to insure and what details I would put for the quotes online? Cheers for the help guys!
Original post by ToastyCoke
Are you registered as a trading company? Do you pay business taxes? If not, then no, you're not eligible.
you don't have to be registered as a company, unless you set up a company, an entirely different entity where you become an employee of the company.
there's also no requirement to register as self employed straight way, you need to register with HMRC by the 5th October of your second year of trading, and then there's no penalties for not doing so, you just have to make sure you file a tax return on time and pay the bill on time.
taxes only become applicable, if at all, at year end when you file a tax return, how can you pay taxes on profits etc when you don't know what they are until year end? the guy could also be under the tax and NI threshold, so no taxes are payable.
Both points are invalid arguments against having business use insurance.
Original post by ToastyCoke
Of course it can. But you're delivering for a REGISTERED business. You will have a payroll number and tax code etc. You're on the tax system.
Again, see above. This care status would be backed up by her claiming Carer's allowance or proof of employment by a charity/agency; again registered as a charity or a business and paying taxes.
Unless you are a VAT registered business, with a financial system in place such as payroll numbers and tax paperwork; you are not eligible.
It's not as simple as saying "I go around to my mums house once a week and take her in her shopping. She pays me a fiver for this and so I'm making money and I'm a business." You physically need to be a business in the governments eyes; it's not just a case of ticking a box on your car insurance application. Oh and it's not just a case of having an accident and not being able to claim; technically you'd be driving without valid insurance; ergo, driving with no insurance.
Again, see above. This care status would be backed up by her claiming Carer's allowance or proof of employment by a charity/agency; again registered as a charity or a business and paying taxes.
Unless you are a VAT registered business, with a financial system in place such as payroll numbers and tax paperwork; you are not eligible.
It's not as simple as saying "I go around to my mums house once a week and take her in her shopping. She pays me a fiver for this and so I'm making money and I'm a business." You physically need to be a business in the governments eyes; it's not just a case of ticking a box on your car insurance application. Oh and it's not just a case of having an accident and not being able to claim; technically you'd be driving without valid insurance; ergo, driving with no insurance.
You're basically talking crap, might be harsh, but you are.
and in actual fact, it is as simple as the scenario you point out, doing anything whether paid or not with the expectation of making a profit (or loss), or in the course of trying to realise a profit (or loss) is classed as self employed, unless you're working through a company / charity or working as an employee, so taking someone shopping for a fiver is technically being self employed.
Don't give advice on insurance and business issues if you clearly haven't got the first clue about it.
VAT registered businesses? so what about the many thousands of self employed people who use work vans and keep their income below the 82k VAT threshold to avoid the red tape nightmare that is VAT? payroll in place? by their very nature self employed people have no 'payroll' unless they have employees, and even then 'payroll' isn't needed unless the employees are earning over the NI and tax thresholds, and considering how they stand at the moment, very few employees of 'self employed' people will be earning enough to pay taxes, as a self employed person they don't get 'paid' all income is their personal income, and they are taxed accordingly at year end when they file their returns.
A business in the eyes of the government? there's no such thing. there's only being self employed, where there's no requirement to register with the 'government' and then there's the various other set ups, LTD companies, charities, LLPs etc etc, but both are perfectly valid businesses whther registered or not, and both have different and even no requirements to officially set up as a 'business'
the whole driving without insurance is a moot point, it would be up to a court to prove that the op wasn't a business and considering the requirements to register as self employed are lax in the extreme, it would be neigh on impossible to prove that somebody wasn't a business, unless a fairly long period of time has passed, and they hadn't filed tax returns etc, but then not filing a tax return isn't proof that somebody isn't trading, if it were, HMRC would be right royally stuffed with tax receipts, and then that becomes a different matter entirely unrelated to 'business insurance'
(edited 8 years ago)
Original post by hussnainh8
Oh okay then.. I guess I can kiss the business insurance good bye lol .. Back to looking for social and commuting insurance.. Any advice on a cheap car to insure and what details I would put for the quotes online? Cheers for the help guys!
don't listen to them, they are talking nonsense.
Quick Reply
Related discussions
- Why is HMRC saying I'm employed when I'm not?
- Self employment while studying
- Jobs for a 15-year-old, if any?
- Where can I find cash-in-hand jobs?
- Twitch affiliate taxes as a 17 year old.
- Masters vs Diploma: justifiable impact on opportunities as a self-employed therapist?
- [Official Thread] Chancellor Jeremy Hunt to deliver Autumn Statement on Wednesday
- Running a business registered in home country while on UK student visa?
- Health and social care unit 17
- Taxes Question
- 2024 Budget: Chancellor Jeremy Hunt under pressure to cut taxes
- I want to find a job
- Child Dependant Grant
- University or Self-Employment?
- People who live in the countryside, I need a business idea.
- Maintenance loan and pre settle status
- Average salary of a commercial barrister
- From employed to self employed on migrant worker loan
- Setting up a not-for-profit organisation (just me)
- Jobs for a 14 yr old
Latest
Trending
Last reply 5 months ago
Where is my car parked during the day? Advice for first car insuranceLast reply 7 months ago
Will paying £1,900 a year for insurance as a new 21 year old driver be a lot?Trending
Last reply 5 months ago
Where is my car parked during the day? Advice for first car insuranceLast reply 7 months ago
Will paying £1,900 a year for insurance as a new 21 year old driver be a lot?
