Search News


 

News

Lloyd & Co
Chartered Accountants

103-105 Brighton Road
Coulsdon
Surrey, CR5 2NG
020 8668 0500
This email address is being protected from spambots. You need JavaScript enabled to view it.

Source: HM Revenue & Customs | | 24/04/2018

The tax benefits of driving a company car have been steadily reduced over many years. Most employers and employees are aware of the additional costs of providing company cars and the tax implications they create. However, for many employees the lure of having a company car means that this remains a very popular option.
There are some circumstances where it can be possible to offer employees car benefits that are exempt from tax.

These include:

Cars available for business journeys only

This rule has been the subject of much case law over the years, but it has generally been established that to qualify for VAT recovery the car must not be available for any private use.

This means that the car should only be available to staff during working hours for employment related duties or to travel to a temporary workplace. The business must also clearly tell their employees not to use the vehicle for private journeys and check that they don’t.

Cars adapted for an employee with a disability

These cars are exempt only for private i.e, journeys between home and work and for travel to work-related training.

Fuel paid for by employees

The fuel benefit is removed when an employee pays for all their private fuel use or if the employer pays and the employee reimburses the amount (during the tax year).

'Pool' cars

Employers are not required to pay or report on 'pool' cars. These are cars that are shared by employees for business purposes only, and normally kept on your premises. Employers must ensure the 'pool' car rules are properly adhered to.

Privately owned cars

Employers do not have to pay anything on cars that directors or employees own privately.



Latest News

Low emission lorries to pay lower levies
17/07/2018 - More...
The government has confirmed plans to introduce a lower rate of the HGV road user levy for lorries that meet the latest

New points-based late filing penalties
17/07/2018 - More...
The Finance Bill 2018-19 draft legislation includes a new measure to introduce a points-based penalty system for certain

HMRC security deposit regime to be extended
17/07/2018 - More...
The security deposit legislation is to be extended to both Corporation Tax and Construction Industry Scheme (CIS)