Company Car Benefit in Kind

Petere_2

My company has temporarily transferred me from normal place of work to another location 75 miles from home. As part of this temporary transfer I have been given the use of a Company Pool Car and fuel is being provided free of charge rather than using my own car and then claiming mileage expenses. This temporary transfer has now lasted over 6 months and I have now clocked up over 22k miles & I am starting to feel a little concerned that I may be liable for tax on a perceived benefit in kind and would like some advice before I find myself landed with a significant tax bill. I have used the car for some private use but this has been limited to less than 5% of my total mileage.

Any advice welcome!

Kimitatsu

MOVING THREADS FOR BETTER RESPONSES


Hi, Martin’s asked me to post this in these circumstances: I’ve asked Board Guides to move threads if they’ll receive a better response elsewhere(please see this rule) so this post/thread has been moved to another board, where it should get more replies. If you have any questions about this policy please email [EMAIL="abuse@moneysavingexpert.com"]abuse@moneysavingexpert.com[/EMAIL].

mark55man

there is a difference between a company car and a pool car - I think you should be OK - but you could ask you company just to be sure. They are undoubtedly giving you the car to save themselves some expenses - but equally, you would kill the value on the car adding 45K a year so probably win win from that perspective. From my reading of the facts they would seem to be reasonable and if they have a pool car its likely they will have appropriate advisors either directly or from the fleet management company (youcould check Arval PHH website - may have som info) or google it

your use of it for private miles does complicate the issue - I would not do that or if you have to, I would record it carefully..

Rolo_Tomasi

Do you take the car home with you? If so then the vehicle is available for private use and therefore you should be paying tax on the provision of a company car. Note it makes no difference if your actual private use is only 5% - you are taxed based on the cars CO2 emissions and its list price.

You would probably be better using your own car and charging your firm for your business travel. This should include travel to your temporary workplace provided you are required to be there for less than 2 years.

BoGoF

It is not a pool car if you are taking it home every night. Basically what you have is a company car and your employer should report it as such on the P11d

cajef

Petere wrote: »

. I have used the car for some private use but this has been limited to less than 5% of my total mileage.

In that case as far as HMRC are concerned it is not a pool car and is liable for tax.