Hi to all
Very Interesting question!
A company has a fleet of 20 cars. The insurance cost of each car is £3000 as per fleet insurance. The company thought that If the employees of the company buy the insurances in their own names than the cost of the insurance would be £500 each car. The company would save £2,500 on each car. In the employment agreements, the company has written the condition for the employees to buy the insurances in their own names.
Please give me your thoughts on Tax implications on the following issues,
- Are employees liabile for P11D but there is no private use
- If company reimburses the insurance cost to the employees
- If employees buy the insurances from their pocket
If you have any more questions relevant to the scenario - please discuss.