Income Tax - very Interesting scenario | AccountingWEB

Income Tax - very Interesting scenario

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,

  1. Are employees liabile for P11D but there is no private use
  2. If company reimburses the insurance cost to the employees
  3. If employees buy the insurances from their pocket

If you have any more questions relevant to the scenario - please discuss.



There are 17 comments. Login or register to view them.

Nice Try

Roland195 |

agree with roland

The Innkeeper |

What if they leave....

landscaper |
landscaper's picture


Paulsoper |

The starting assumption seems bizarre

TomMcClelland |
TomMcClelland's picture

£3000 per car - find a new broker

Democratus |
Democratus's picture


BigBadWolf |
BigBadWolf's picture

What are the cars used for?

ShirleyM |
ShirleyM's picture

I appreciate what you said.

zaidi |

Too extreme

petersaxton |
petersaxton's picture

no private use.....these

justsotax |

I was asked,

Richard Willis |
Richard Willis's picture

Not so

tltodman |

"but insurance can only be bought by the owner of the asset."

rworboys |

Cheap insurance - multi car policies

wingco44 |

leased car

The Innkeeper |

One-man Limiteds - okay

wingco44 |