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Company Pool Car Rules

 
 
Abacus
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      09-27-2005, 08:42 AM
Hello,

I know the Revenue like to bash company pool cars and I hope someone can
offer some advice.

I have a small business and there are three of us (1 director and 2
employees) who are "on the road" a lot. We each have our own private cars
and currently use them and charge mileage to the company. We want, instead,
to buy a company pool car which would be owned by the company and insured by
the company. We would each keep our own private cars too.

If we had a company pool car, one of use MUST take it home each evening as
there is no where to park overnight near our office (we use a multi-storey
during the day which is unsafe overnight (usual vandals etc).

Is it possible for the company to own this pool vehicle and for none of us
to be hit with personal use charges by the Inland Revenue? Do we need to do
anything in particular to ensure the vehicle is maintained as a pool vehicle
and is there anything, in particular, that needs to be done to ensure none
of us get hit with a private use charge?

Thanks

Ian


 
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DoobieDo
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      09-27-2005, 10:38 AM
In article <dhb0m7$7k9$(E-Mail Removed)-infra.bt.com>,
(E-Mail Removed) says...
> Hello,
>
> I know the Revenue like to bash company pool cars and I hope someone can
> offer some advice.
>
> I have a small business and there are three of us (1 director and 2
> employees) who are "on the road" a lot. We each have our own private cars
> and currently use them and charge mileage to the company. We want, instead,
> to buy a company pool car which would be owned by the company and insured by
> the company. We would each keep our own private cars too.
>
> If we had a company pool car, one of use MUST take it home each evening as
> there is no where to park overnight near our office (we use a multi-storey
> during the day which is unsafe overnight (usual vandals etc).
>
> Is it possible for the company to own this pool vehicle and for none of us
> to be hit with personal use charges by the Inland Revenue? Do we need to do
> anything in particular to ensure the vehicle is maintained as a pool vehicle
> and is there anything, in particular, that needs to be done to ensure none
> of us get hit with a private use charge?
>
> Thanks
>
> Ian
>
>
>

a sign-written van ?
 
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Abacus
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      09-27-2005, 10:50 AM

> a sign-written van ?


From what I understand, a sign-written van would not avoid personal
benefits.

The question another way would be...

How do we prevent the Revenue raising a personal use charge against an
employee who has been told he must take a company pool car home (principally
for security) without that employee being hit with a tax adjustment as he
neither wants nor has requested a company vehicle? (It may be a different
employee on different days)

This is a genuine situation and not just a means to avoid tax. The tax
payers charter states that the Revenue have a duty to charge "the right
amount of tax". If the vehicle is a true pool vehicle then the right amount
of tax should be zero. How can we safeguard that position ?

Thanks

Ian


 
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Peter Saxton
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      09-27-2005, 06:30 PM
On Tue, 27 Sep 2005 10:50:37 +0000 (UTC), "Abacus"
<(E-Mail Removed)> wrote:

>
>> a sign-written van ?

>
>From what I understand, a sign-written van would not avoid personal
>benefits.
>
>The question another way would be...
>
>How do we prevent the Revenue raising a personal use charge against an
>employee who has been told he must take a company pool car home (principally
>for security) without that employee being hit with a tax adjustment as he
>neither wants nor has requested a company vehicle? (It may be a different
>employee on different days)
>
>This is a genuine situation and not just a means to avoid tax. The tax
>payers charter states that the Revenue have a duty to charge "the right
>amount of tax". If the vehicle is a true pool vehicle then the right amount
>of tax should be zero. How can we safeguard that position ?
>
>Thanks
>
>Ian
>

Find a secure place to park the "pool car" that doesn't involve the it
being driven to the employees home.

--
Peter Saxton from London
(E-Mail Removed)
 
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Mike Lewis
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      09-28-2005, 06:36 PM
"Abacus" <(E-Mail Removed)> wrote in message
news:dhb85s$b0c$(E-Mail Removed)-infra.bt.com...
>
> > a sign-written van ?

>
> From what I understand, a sign-written van would not avoid personal
> benefits.
>
> The question another way would be...
>
> How do we prevent the Revenue raising a personal use charge against an
> employee who has been told he must take a company pool car home

(principally
> for security) without that employee being hit with a tax adjustment as he
> neither wants nor has requested a company vehicle? (It may be a different
> employee on different days)


You don't unless the nights it is taekn home are very rare. Security of the
vehicle is irrelevant.

> This is a genuine situation and not just a means to avoid tax. The tax
> payers charter states that the Revenue have a duty to charge "the right
> amount of tax". If the vehicle is a true pool vehicle then the right

amount
> of tax should be zero. How can we safeguard that position ?


What you describe isn't a pool vehicle.

--
Mike Lewis
Chartered Accountant
www.mikelewis.co.uk


 
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Russell Lewis
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      09-28-2005, 09:36 PM
The first Problem is that the tax rules bite if the car is available for
private use (i.e no actual private use is necessary)

The problem is usually the easiest to get around. You simply state to all
employees as part of their use of the vehicle that there can be no private
use and make it a written condition for use of the car.

Your next problem is that 'taking the car home' is by definition Private
use. ( The revenue define it as commuting)

To get around this problem you need to get a written dispensation from HMIT.
Basically you need to outline the situation as given, give them a copy of
the written conditions of use of the vehicle and get them to agree that
there is no PAYE charge.

To avoid undue costs I would get a general clearance before you purchase the
vehicle. Beware however that the revenue can vary these dispensations at a
whim. ( Although they try to avoid this)

Russell


"Abacus" <(E-Mail Removed)> wrote in message
news:dhb0m7$7k9$(E-Mail Removed)-infra.bt.com...
> Hello,
>
> I know the Revenue like to bash company pool cars and I hope someone can
> offer some advice.
>
> I have a small business and there are three of us (1 director and 2
> employees) who are "on the road" a lot. We each have our own private cars
> and currently use them and charge mileage to the company. We want,

instead,
> to buy a company pool car which would be owned by the company and insured

by
> the company. We would each keep our own private cars too.
>
> If we had a company pool car, one of use MUST take it home each evening as
> there is no where to park overnight near our office (we use a multi-storey
> during the day which is unsafe overnight (usual vandals etc).
>
> Is it possible for the company to own this pool vehicle and for none of us
> to be hit with personal use charges by the Inland Revenue? Do we need to

do
> anything in particular to ensure the vehicle is maintained as a pool

vehicle
> and is there anything, in particular, that needs to be done to ensure none
> of us get hit with a private use charge?
>
> Thanks
>
> Ian
>
>



 
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Newsgroup User
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      09-30-2005, 08:39 PM
just get a van and pay the benfits

you can not get away with a car if you take it home, unless its parked at
the premises and no one takes it home.

the inspector will actually drive around the directors home, before an
inspection, to check whether anyone takes the car/van home.


"Abacus" <(E-Mail Removed)> wrote in message
news:dhb85s$b0c$(E-Mail Removed)-infra.bt.com...
>
> > a sign-written van ?

>
> From what I understand, a sign-written van would not avoid personal
> benefits.
>
> The question another way would be...
>
> How do we prevent the Revenue raising a personal use charge against an
> employee who has been told he must take a company pool car home

(principally
> for security) without that employee being hit with a tax adjustment as he
> neither wants nor has requested a company vehicle? (It may be a different
> employee on different days)
>
> This is a genuine situation and not just a means to avoid tax. The tax
> payers charter states that the Revenue have a duty to charge "the right
> amount of tax". If the vehicle is a true pool vehicle then the right

amount
> of tax should be zero. How can we safeguard that position ?
>
> Thanks
>
> Ian
>
>



 
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Simon
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      10-01-2005, 07:35 PM

"Newsgroup User" <(E-Mail Removed)> wrote in message
news:dhk7qq$8s1$(E-Mail Removed)-infra.bt.com...
> just get a van and pay the benfits
>
> you can not get away with a car if you take it home, unless its parked at
> the premises and no one takes it home.
>
> the inspector will actually drive around the directors home, before an
> inspection, to check whether anyone takes the car/van home.
>
>



Not as a matter of course he wouldn't. That's directed surveillance and it
requires authority from a designated officer and detailed records are kept.
These are vetted by an outside authority and HMRC would be severely
criticised for doing so without just cause.


 
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Fred
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      10-02-2005, 09:33 AM

"Abacus" <(E-Mail Removed)> wrote in message
news:dhb85s$b0c$(E-Mail Removed)-infra.bt.com...
>
>> a sign-written van ?

>
> From what I understand, a sign-written van would not avoid personal
> benefits.
>


I thought IR had changed it's rules regarding vans and commuting to and from
work. It's not regarded as a taxable benefit any more. In 2007 Gordon
Brown is going to heavily tax commercial vehicles which are used for
personal use over and above commuting to work. Am I wrong?

I also thought it was allowable for a "pool" car to be taken home as part of
a journey the next day.

This all begs the question how the employee gets the car home without
leaving his at work?


 
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Peter Saxton
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      10-02-2005, 12:11 PM
On Sun, 2 Oct 2005 10:33:09 +0100, "Fred" <(E-Mail Removed)0m> wrote:

>
>"Abacus" <(E-Mail Removed)> wrote in message
>news:dhb85s$b0c$(E-Mail Removed)-infra.bt.com...
>>
>>> a sign-written van ?

>>
>> From what I understand, a sign-written van would not avoid personal
>> benefits.
>>

>
>I thought IR had changed it's rules regarding vans and commuting to and from
>work. It's not regarded as a taxable benefit any more. In 2007 Gordon
>Brown is going to heavily tax commercial vehicles which are used for
>personal use over and above commuting to work. Am I wrong?
>
>I also thought it was allowable for a "pool" car to be taken home as part of
>a journey the next day.
>
>This all begs the question how the employee gets the car home without
>leaving his at work?
>

If it's a pool car shouldn't the employee travel to work to collect
it?

--
Peter Saxton from London
(E-Mail Removed)
 
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