Pool cars

Pool cars

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We have a couple of pool cars which sit around for quite a lot of the time.

FD wants to make them available to employees for private use when not required in the business but to charge the employees a 'rental' fee - he thinks this will avoid any BIK issues. I'm not so sure....I really want to avoid any extra paperwork on this to HMRC.

Any advice?
Alison Hill

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By neileg
03rd Dec 2007 13:28

Madness...
If you want to avoid paperwork, this is not the way to go! Unless you agree a dispensation (unlikely in the area of cars, but possible) you will be doing a benefit calculation for every employee that uses a car, even if the hire charge equals the benefit arising. Plus, unless you've chosen low BIK cars, the hire rate may not be very attractive to the staff!

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