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Chauffeur's benefits

Director provided with chauffeur for sole use - what about chauffeur's benefits in kind?

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hi all

A director that i advise has requested and been provided with a chauffeur and a company car. Whilst i understand that the chauffeur's costs are included on their P11D inclusive of ER NIC (and i assume related apprenticeship levy and auto enrolment costs), I am unsure what the position is with regards to any BIKs provided to the chauffeur - would they be assessable on the chauffeur or are they assessable on the director?

It's not clear from HMRC's guidance and given the chauffeur is provided with their own company car to use (as well as the driving the director's company car in their capacity as a chauffeur) and the difference in tax brackets, i was looking for other's views as to whether there's an argument to state the chauffeur's total remuneration package inclusive of BIKs is assessable on the director (in this case the chauffeur's car assessable as a second car on the director) - EIM23045 implies that it would be but have not seen this in any other examples on Accountingweb or elsewhere.

 

 

 

 

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18th Jul 2019 07:36

I'd suggest not worrying about it. Just use the figure on the P11d provided.

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18th Jul 2019 08:58

Agree with Tax Dragon. It's down to the employer to ensure that the P11d is correctly completed.

That said, Is there any personal use of the chauffeur-driven car? If it's essentially to enable the director to carry out his employment duties, there is surely no benefit in kind. If there is both personal and business use, then the total cost should be apportioned between the two - or some kind of market rate used, such as taxi fares.

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18th Jul 2019 11:52

The right answer though is that the chauffeur gets a car benefit fortheir car. The employer will be liable to Class 1A on that benefit.

The director gets a car benefit (assuming it is available for private use) for their car and a separate benefit for the provision of a chauffeur (being the chauffeurs' salary and other employment-related costs, plus employer's class 1, plus the costs of providing the chauffeur with a car, plus the class 1A on the chauffer's car).

Yes. There's something being taxed twice.

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