Two cars

Two cars

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Under the new company car regime having a small perk car seems quite attractive, so if an employee has a small CO2 efficient company car, but uses his own larger car for business mileage can he still claim the AMAPs for his own car?
Rebecca Cave

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By AnonymousUser
27th Mar 2002 10:33

Stuart, what is the situation if .....

Stuart,

What is the Revenue position if a company car is provided without the benefit of fuel? Surely, in this situation one needs to use the Inland Revenue "Advisory Fuel Rates for Company Cars".

Regards,

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By AnonymousUser
27th Mar 2002 06:48

S198 will prevent mileage claim deduction
My personal view is that the company car driver who uses his own car will NOT be able to claim the business mileage (even if attending a temporary worklace). The expenses have not been 'necessarily' incurred, as he/she had an alternative available to him/her.

From the Section 9A enquiries that I have seen, I know that workers who have been provided with site buses and who choose to use their cars instead have been denied deductions for travelling expenses under FPCS. Why should company car drivers be treated any differently? I know Schedule 12A was a relaxation to earlier S198 rules, but I can't see Inland Revenue allowing this 'grey area' to pass unchallenged.

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By AnonymousUser
25th Mar 2002 17:07

Absolutely

This is perfectly legitimate. Well done; the so called clever planners who publish those slightly dodgy tax guides that one sees recommend this and it is better than most of their ideas.

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By AnonymousUser
25th Mar 2002 18:25

Also AMAP is standard now

The other thing is that AMAP is now at a Uniform Rate and so it doesn't matter which/what car size is driven as long as a proper log of business mileage is maintained.

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By AnonymousUser
25th Mar 2002 17:14

I think I am lost!

Who drives the small perk car if not the employee? Why pay for the benefit if it isn't suitable to drive by the employee for business? He can continue using his own "big" car and claim AMAP in the normal way.

Unless we are talking about children or spouse of the employee!

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