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Car benefit for self employed?

Car benefit for self employed?

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My client is a self employed sales trainer in the automotive sector. One of her clients (vehicle manufacturer) wishes her to drive their car while she is is providing training to franchisees. This will last until the end of December during which she is providing training mainly, but not exclusively, for the car manufacturer. I understand that the car will be fully expensed including fuel. Normally my client would drive her own car and recharge business mileage. There may be some incidental private use and business use for other clients during this period.

As my client is not an employee I can't see any taxable benefit on her. Can any of you wise ones think of anything that I have missed?

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By JCresswellTax
28th Sep 2010 13:42

Employee ?

Just be careful as HMRC may look upon your client's engagement as being on an employed basis if, for all but trading status, she is really just an employee.

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By gilderda
28th Sep 2010 16:59


Could the value of having the car available and not having to run their own vehicle be seen as part of the consideration for the service they are providing?


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Della Hudson FCA
By Della Hudson
01st Oct 2010 20:53

Thank you

Thanks for your advice.

@JCresswellTax: I've considered the IR35 angle and everything seems fairly straight forward.

@gilderda: As far as I can see cars are treated quite distinctly from other assets and have their own rules. Do you know of any exceptions? Cost of providing would be low for the vehicle manufacturer.


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