Advertising space on cars

Advertising space on cars

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I have been asked whether employees are able to charge the company they work for advertising space on their personal cars. From trawling HMRC there does not appear to be any mention of this specifically.

For company cars, the costs of providing the adverts would be alloable for CT, with no variance to BIK.

For private vehicles however no mention? I believe this is being looked at as an incentive for staff, and should therefore be taxable sum payable through payroll, although it is being suggsted to me that this could be expensed by the employees?

Has anyone had any experience of this in practice or could confirm my thoughts on it being a taxable benefit?

Thanks!

Replies (3)

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By Annoying Paper Clip
19th Apr 2016 15:10

What you are describing does not sound like employment income to me. The reason for the income appears to be the wrap rather than the employment.

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paddle steamer
By DJKL
19th Apr 2016 15:27

If I am not your employee and charge you for advertising on my car surely  I am taxable on the income I receive. Now if I pay for the wrap/advert I may offset this cost but I am not going to do it unless I receive more than I expend.

So appears to me that any such payment to an employee will be his/her taxable income, it may escape schedule E  and class I NI but  maybe not Schedule D.

Hardly seems worth the effort.

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Replying to I'msorryIhaven'taclue:
By Duggimon
19th Apr 2016 15:38

It's a rare occasion where it would be beneficial for the employee to be assessed on it through PAYE since the amount of extra tax payable will no doubt be less than the cost of engaging someone to prepare the ensuing self assessment return.

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