Sole director/shareholder insists company cars parked at his house are not a BIK

Client recently incorporated at his own request (I wanted him to prove he could get me his data accurately and on time for a change first, but he was in a hurry). He is a sole director and the cars he uses for work, that were previously owned by the business, are still parked outside his house. His view is that his girlfriend has a car that he uses for all his personal journeys, and that he can therefore make a good case that the cars are never used for personal journeys and are therefore not BIKs.  I understand that any claim that they are not BIKs will fail, even if he signs an agreement with the company forbidding any personal use, as their being outside his house makes them available for use by him.

I have explained this to him, including the difference between the rules for an employee/director and a sole trader, and his response is (quite typically for him):

"thats ridiculous. everyone that does my job gets releif on vehicles and motor expenses. i have for 15 years.  i dont want to change now."

Is it worth adopting the treatment he wants, and warning him that it could be challenged by HMRC, or should I insist on keeping the vehicles outside the company and claiming AMAPs for his motor expenses?

Comments
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A hard argument

The VAT Doctor |
The VAT Doctor's picture

Insurance

chatman |

Company car options

raychidell |

Sounds like ...

BKD |
BKD's picture

Why argue?

cfield |
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If he does introduce the cars

E Scott |

@ E Scott

cfield |
cfield's picture

@cfield

E Scott |

Ownership of the cars...

mumpin |
mumpin's picture

Ownership

BKD |
BKD's picture

@ BKD

mumpin |
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Surely the point is...

George Attazder |
George Attazder's picture

Revenue law is clear

David Gordon FCCA |

"everyone that does his job"

chatman |

and also

David Gordon FCCA |

Thank you all. Will stick with AMAPs.

chatman |

What a stange question

BKD |
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I generally find ...

Old Greying Accountant |
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