Advert on company car

Had a client on the phone asking if having an advert on a company car reduces the benefit in kind. Not heard of this? Anyone know anything!. Thanks!

Comments

One word answer: No    2 thanks

Cloudcounter | | Permalink

One word answer: No

George Attazder's picture

If it's...    1 thanks

George Attazder | | Permalink

... a fire engine with the word "FIRE" painted back to front on the front of it, then there's no benefit, unless the private use is significant.  So no putting fires out in your spare time you naughty boy.

In pretty much all other circumstances, I'd agree with Cloudcounter.

Thanks. I didn't think so..

0098087 | | Permalink

Thanks. I didn't think so..

taxhound's picture

I would...    1 thanks

taxhound | | Permalink

I would allow the cost of putting the advert  on the car though in the company accounts if that is any consolation....

 

But . .

Cloudcounter | | Permalink

taxhound wrote:

I would allow the cost of putting the advert  on the car though in the company accounts if that is any consolation....

 

 

Ah, but would you add it to the cost of the car and accessories for P11d benefit purposes? 

 

Not a serious suggestion, btw, but I wonder if there's a P11d inspector out there who would try this.

 

 

Steve Kesby's picture

Accessories

Steve Kesby | | Permalink

To be an accessory, the item needs to be "equipment".  The dictionary defines "equipment" as "the necessary items for a particular purpose".  These car wraps seem to me to be completely unnecessary.

Euan MacLennan's picture

Why not ask a TaxAssist accountant?

Euan MacLennan | | Permalink

On this topic, they ought to be experts as they always seem to cover their nice cars with yellow signwriting.

Disagree

Roland195 | | Permalink

Steve Kesby wrote:

To be an accessory, the item needs to be "equipment".  The dictionary defines "equipment" as "the necessary items for a particular purpose".  These car wraps seem to me to be completely unnecessary.

By that logic, a very expensive sound system in a company car would escape charge as it could not be regarded as necessary to the employee's duties.

Helpsheet 203 talks about accessories. None of the items listed specifically exclude the car wraps which I understand can cost far in excess of £100 and are fixed to the car (not sure how "fixed" they need to be though).   

 

 

Steve Kesby's picture

@Roland

Steve Kesby | | Permalink

My comment was intended to be tongue in cheek, in the spirit of the further question posed.  I didn't say the item had to be necessary to the employee's duties, but necessary for a particular purpose.  I was simply offering my opinion that they're not necessary for any purpose.  The purpose in mind (ie advertising) would be far better served by other means.

I'll get my coat

Roland195 | | Permalink

Steve Kesby wrote:

My comment was intended to be tongue in cheek.  I didn't say the item had to be necessary to the employee's duties, but necessary for a particular purpose.  I was simply offering my opinion that they're not necessary for any purpose.  The purpose in mind (ie advertising) would be far better served by other means.

Sorry, the humour was too subtle for me to pick up on after 31st January.

I don't see the point of it either aside from drawing attention to the fact it is a company car and so extending an open invitation to the no win no fee parasites to stage an "accident".