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Company pool car expenses.........

past senario was that our Director had his private car included on company fleet insurance (benefit included in p11d ok). This estate car was then available for all employees to use for site visits etc (when not requiring large equipment) which meant that the company vans were left to be used for major jobs. All business mileage was documented & tracked and reimbursed at the applicable rate (currently 45p/mile).

As this car is now 7 years old he has been looking to replace it. He plans to sell this to the company at a proven used car value, and use the funds as a deposit to take on a privately leased new purchase. If all is documented properly I don't see a problem with him making a private sale to the company, unless you may think differently?

My major concern is that HMRC take a dim view on "pool" cars. This estate car will not be used for any private mileage and will be parked overnight within the compound used for our vans - all mileage will be documented, journey start & end readings etc. As for fuel, we are thinking of getting it added to our fuel card system, as are our other 4 vans, where fuel is purchased on a need to basis by a fuel card, and direct debited to our bank a/c weekly.Putting it on the fuel card account seems the only way to cover fuel costs -as it will be used by several different employees its not possible for them to claim back business mileage individually as they will be required to top up fuel from personal funds as needed, say £30 or £40 but may only be doing 25miles themselves for that particular journey ?

do you think that this seems a viable way to handle this - or is there anything else we need to address ?

many thanks for all your help, in advance.

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By neileg
17th Feb 2012 12:21

Dim?

HMRC don't take a dim view of pool cars, they are just sceptical! In your case, parking it in a locked compound overnight will make a major difference to the sceptisism. The fuel card and mileage log seem perfectly reasonable.

You need a market value for the sale to the company. One of the trade guides would do fine for this, or a letter from a suitably qualified person.

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