Can company car benefit be shared between husband and wife?

Can company car benefit be shared between...

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Can a company car benefit be shared between a husband and wife who are directors and shareholders of a small private company.

My client company has purchased a car for the use of the two directors who are husband and wife.  They both genuinely use the car privately and I have suggested the shares are 50:50 as being a just and reasonable basis.

They are both paid the maximum salary for NI purposes so have some spare personal allowances that could soak up some of the benefit charge.

If this is arrangement is likely to be accepted where do you report the fact that the benefit is shared.  Cannot see anything on the P46 Car form for this.

Readers views and opinions would be appreciated.

LD&Co

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By nogammonsinanundoubledgame
05th Feb 2015 15:17

Yes you can share the benefit equitably

Check out s.148(2) IT(EP)A 2003

Warning bells when they are taxed at differing marginal rates, but in principle is possible.

We do this regularly (when the car is in company ownership)

With kind regards

Clint Westwood

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By lendainty
06th Feb 2015 06:37

Shared company car benefit

Clint

Thank you for your comments.

Where exactly is it that you report that the car benefit is to be shared? I cannot see where this is requested on the P46 Car form or on the P11D itself.

Len

 

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