Self Employment & Company Cars
I am the bookkeeper of a small family run business. We have 4 employees, of which 2 are directors. We pay a company that does our sales work for us, on a commission basis. The work is all done by one of the director's of the business. We have now issued him with a company credit card as he had begun incurring expenses. We also provide him with a phone on our company contract. He has been pushing for more money and we think the best way to give him something extra is to provide him with a car. My questions are this:
1) Given that we provide him with a car, a phone and a credit card - is he an employee? He does still do sales work for other people.
2) If yes to the above, could we put the car lease in his name instead, and he recharges us for it on a monthly basis?
Any advice gratefully received.
We do have an accountant who prepares our year end, but I said I would see what I could find out here first (the accountant's fees add up enough as it is!)
Many thanks in advance,