Car Benefit

Car Benefit

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Hi,

I have a query regarding a pooled car which is used by all employees of a business, however in the evening one particular employee takes the car home for security purposes.

The business keeps a log of all the mileage done by the business including the mileage to and from the business to employees home.  Only one employee takes it home who happens to live closes to the business premises.  The employee has anothere car in the household which she uses for personal use.

The compliance officer wants to raise an assesment for the benefit in kind.  He is saying that the car doesn't qualify as a pooled car as it is taken home by an employee.

Should i as for a review of the case?

Thanks

Munir

Replies (4)

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By Steve Kesby
03rd Apr 2012 12:36

Pool car rules

One of the "rules" for a pool car is that it's not normally kept at or near any of the employees' residences overnight.  So prima facie the compliance officer is correct.

There is an exception to this rule, that probably won't be useful historically, but may solve the problem going forward.

The condition is not breached if the vehicle is "being kept overnight on premises occupied by the person making the car available".  If the employee that keeps the vehicle licences the part of the driveway on which it's parked overnight, then the company will be in occupation of premises under that licence.

If she normally leaves it on a public highway outside her house though, it's going to be a non-runner.

For the past situation, you might try arguing that there's already an informal licence to occupy, but I'd doubt your prospects of success.

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Replying to tom123:
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By [email protected]
05th Apr 2012 16:23

Car Benefit

Thanks for your reply,

Can the benefit be avoided if during the day the car is being used by a couple of employees and all the mileage logged.

Munir

 

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By AndrewSullivan
03rd Apr 2012 16:44

Also

The pool car policy that we tend to use states something along the lines of....

"An employee will only take the car home at night if they need it early the next day for a business trip, and it would be inefficient to collect it from the workplace".

But, apart from that, I'd say there is some form of benefit there. 

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By Steve Kesby
06th Apr 2012 12:24

No

You need to do that as well.  There are four requirements for a car to be treated as a pool car and you need to meet all of them.  See EIM23450.

As soon as you fail to meet one of them, as you have, there is a full car benefit which will be shared proportionately amongst the employees to whom the car has been made available for private use.  This may just be the person who has actually taken it home if the only private use is her commuting.

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