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Car benefit for gardener/driver

Car benefit for gardener/driver

I have a new client who has employed a gardener/driver/farm hand/handyman fro many years. He provides him with accommodation and has advised me that HMRC agreed a number of years ago that it was necessary for him to live on the employer's farm to do his job and therefore the accommodation is not a taxable benefit (I have asked for evidence). The employee often drives the employer in the employer's car. Very occasionally the employee borrows the employer's car for short, local journeys, putting some petrol in to cover the fuel costs. What, if any, is the benefit for the use of the car?

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18th Mar 2016 16:38

Company car?

Presumably it would depend upon whether the 'employer's car' was a company car or belonged to the employer personally.  If it belongs to the employer personally then there would be no implication if he's just borrowing the car to make personal journeys.  If the car is a company car then benefits in kind would apply with the appropriate allowances for petrol reimbursed.

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By maxaca
18th Mar 2016 16:56

No that is irrelevant
the employer is making a car available to his employee - albeit that he uses it both in the course of his duties (chauffeur) and privately. Unless there is something in the employment contract restricting the private use to support an argument that it was 'not available' for a defined period of days or could be argued to be a pool car then there is likely to be a technical benefit. Reimbursing petrol is also irrelevant to any car benefit but may rebut a car fuel benefit argument. Could he not arrange things so that he is running an errand for his employer during these local trips?

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18th Mar 2016 17:14

Sorry

Missed the bit about him driving the employer in his car.

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