P11D for Directors wife?

P11D for Directors wife?

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The vehicle is a commercial vehicle but is rarely used for business. The company pays all costs including fuel for private use.
Does a P11d have to be completed and if so what are the chances of only declaring the £400 van benefit even though it is not used in the business?

thanks
Janniehr

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By AnonymousUser
14th Nov 2006 13:25

Depends - but you may have to add it to the Director's P11D!
The answer, as in all things, is it depends.

Firstly does the wife take a salary from the company. If the total of the salary and the benefit in kind exceeds the £8,500 limit then a P11d will have to be prepared. If the total is below this then a form P9d should be prepared.

Secondly why does the wife have the vehicle? If she has it solely because she is the wife of the director then although the company may not have to prepare a P11d for her the vehicle may have to be added to the director's P11d.

What is the company's policy for other employees. Do they all have vehicles? If so and the wife draws a salary then there s no need. But if the other employees do not have a vehicle then HMRC will argue to only reason she has one is becouse her husband is a director and it should be shown on his form.

Where do you get the £400 figure from? The van benefit is either £350 or £500 depending on the age of the van (over or under 4 years of age at the year end) . There is no benefit chargeable if the private use is restricted or is insignificant. However from your notes this would appear not to be the case.

From 2007/08 (corrected previous entry of 2006/07) the rates rise to a benefit of £3,000 with an additional fuel benefit of £500 if private fuel is provided.

This sounds like a double cab pick-up scenario. Don't forget that from 6 April 2002 double cab pick-ups are classed as cars or vans in line with the VAT treatment. See www.hmrc.gov.uk/manuals/eimanual/EIM23045.htm for more details.

Hope this clarifies things

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By garyging
14th Nov 2006 15:49

The van benefit does not increase to £3,000 until 2007/08

http://www.hmrc.gov.uk/manuals/eimanual/eim22790.htm

And there is no effective fuel charge for vans unti 2007/08 as the charge is currently nil

http://www.hmrc.gov.uk/manuals/eimanual/EIM22900.htm

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