A consultant who is registered as self employed has the use of a vehicle all the time provided by a company he carries out work for.
What are the tax implications for both the company and the consultant.?
david
Replies (5)
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Has the treatment for this changed?
This is an old topic - but has the treatment changed?
Thanks
Get both sides to agree the treatment
David
Agree with general comments over risk to self employed status of the work, nb the company takes the risk in this.
Not sure though on the declarable sum if they maintain s/e status, in that the scale charges are for employed & employers not s/e.
Case I had there was a good reason the car was used, ie it was spare, company had no use for it and was more reliable than the one run (when working) by the s/e consultant.
So the deal was, here's the contract price for the work and then they negotiated a reduction for the depreciation, running costs etc covered by the company, ie a commercial arrangement. Problem was nobody told the payroll dept who sent in a P11D for the car & s/e consultant, without telling her!
So, get the 2 sides to agree the commercial reasons & price for the arrangement, in writing, ie it can't be left as a perk.