I can see very little from HMRC that provides clarity with regards to the application of a 2014/15 company car benefit arising on company cars whose lease/hire costs are recharged to directors and employees.
As far as i am concerned where possible all such arrangements should be cancelled, but where this is not possible, while i understand that private use contributions will reduce the benefit charge for payments made in the tax year-
- Will recharged payments of lease/hire costs accepted as private use contributions???
- EIM25250 states that payments must actually be made, will debits to a directors loan account (of course providing it is in credit) with supporting invoice be accepted as such a payment?
Any helpful comments/ views greatly appreciated
Replies (4)
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Surely
Pending HMRC's appeal to the Court of Appeal, the consequence of the UTT's decision is that there is no benefit in the circumstances you describe
The change in the law
Only amends one of the two points on which Apollo Fuels won.
You have to remember though that HMRC's opinion is that nothing has changed.