Good morning
Our client has no personal use of his taxi. He runs another car for personal use. If we expressly prohibit personal use would he still have a BIK as he doesn't live in the licensable area or could we argue that as he works from home & claims a home office allowance that travel from his home/office is business travel?
Many thanks
Tracy
Replies (6)
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Me again
I think HMRC would argue that it's commuting, based on Newsom v Robertson (See BIM37605 - albeit a self-employment case) and their views expressed in paragraphs 3.28 and 3.29 of booklet 490 and in Tax Bulletin 79.
It doesn't necessarily mean their views are correct (although I can see the point that they're making), but they would take issue at some stage or other.
Taxi driver - travelling appointment
I think EIM32368 covers this.
Clearly, driving a taxi is a "travelling appointment" and as this driver chooses to live outside the area he is licensed for, travel between home and the boundary of that area is not business travel.
office based?
If he is a ltd company I assume the office is based at his house and when he does his first pick up of the day he is travelling from the office to ”site” at a n other location.
Btw my theory is merely speculation that may assist you, I suspect others have given a more technically correct answer!