Legally avoiding company car tax?
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So that leaves you back where you started.
How will his employer police this to HMRC's satisfaction?
I guess the starting point might be the vehicles insurance but that would mean additional work for the employer making separate arrangements for your son. Will they be willing to do that?0 -
to be fair I have actually seen it done in practice with as little as the relevant clause in the employment contractDazed_and_confused wrote: »So that leaves you back where you started.
How will his employer police this to HMRC's satisfaction?
I guess the starting point might be the vehicles insurance but that would mean additional work for the employer making separate arrangements for your son. Will they be willing to do that?
the real test, as hinted at in the HMRC info, is recording physical non usage.
In my case the vehicle had a tracker fitted. Its data was frequently saved and a precise mileage log was kept of every business journey undertaken and reconciled against the odometer readings taken each year at the service (vehicles were sold before needing MOT) so "show" that the car had never been used for non business use.
All of that of course added extra admin burden for the employer so was only offered to "select" people.
This issue has been examined many times in the context of one person personal service companies, ie where the employer and the worker are one and the same, and the place of employment is the home address. On paper therefore a company car is simultaneously kept at both home and the place of employment.1 -
The employer has to agree and change their rules for him only to prohibit him from using the vehicle privately. They then need to put in place evidence that they are policing to ensure that no private usage happens.That's great. Seems that indeed a company car driver can indeed avoid this company car tax and the info comes from the government website.:beer:
The employer may well refuse to do this seeing as they have a chance of a penalty and charge should it be found that the car has done even one mile of private travel.
You have to remember that private usage isn't just taking it out on a weekend or doing donuts in the local car park on an evening, Its anything that isn't work related so if he's at work on a Monday evening and he wants to just detour a mile to his girlfriends then he'll have broken the rules.
The sensible thing to do is sell the Corsa & cancel the insurance, the savings on the insurance alone may well cancel out the CC tax so it's win/win. Plus as the 10p mile is actually to cover the fuel costs hes never going to be out of pocket!0 -
Thanks for the info. His company is based up north and he will be a southern based engineer who would and could not travel to his HQ.
Another quick question, you said your son had worked there for 6 months and is now being promoted? where did he physically work before the car then if the office us up north?0 -
He started off as an assistant engineer and is now actually in his 9th month of employment, even though I thought it was 6, so he has never worked on his own and would be paired up with a southern based engineer each day.
He is now learning the bits of the job to allow him to work on his own.
The car does have a tracker so all he can do is ask but as has already been pointed out selling his own car would be the better solution but as dad he does not listen to a word I say.:D0 -
I have recently been furloughed by my company and have a company car which I am not using. Can I inform my company or HMRC that I do not want to pay the tax on the vehicle as I am not using it until I go back to work. I have taken a copy of the mileage and the vehicle is also fitted with a tracker so can be proved that it has not been used.0
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similar question answered here - https://forums.moneysavingexpert.com/discussion/6122794/company-car-tax-bik-whilst-shielding#latest0
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