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How to make a company car unavailable?

OMB working from home

So client can’t drive for 6 months, other than cancelling the lease how else can it be made unavailable in the eyes of hmrc?Thanks 

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By mrme89
23rd Apr 2018 08:57

Why can't they drive it?

Is it available for use by anyone else which would mean the BIK would be assessed on the director anyway?

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23rd Apr 2018 09:08

If he is banned, suggest the vehicle is taken off road, insurance cancelled etc, and get a SORN.

Has he got a friendly garage who might store it and confirm they have done so?

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By Slim
to ireallyshouldknowthisbut
23rd Apr 2018 09:35

I believe even if it is sorn, not MOT'd and uninsured this is still not good enough.

I had thought about storage, however he will still have the keys and be able to access.

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to Slim
23rd Apr 2018 10:02

How can it be said to be available for private use if it's illegal to drive it on a public road?

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to Cloudcounter
23rd Apr 2018 22:59

It's still available and if they were particularly stupid it could be used, or indeed a spouse, relative, friend, or chauffeur might be able to drive the car

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23rd Apr 2018 11:34

Minute from the company that under no circumstances under threat of dismissal (if necessary) that is the car to be used from xx/xx/xx for private use, in addition to above.
Difficult to SORN if a lease car I suspect. However, insurance could be amended to business use only.

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By Pygmy
23rd Apr 2018 12:12

How can a sole trader/sole director sack themselves?

Surely what you need to do is persuade the simple minded HMRC officers that there is some sound business reason for leasing a car in order NOT TO DRIVE IT.

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By Slim
to Pygmy
23rd Apr 2018 16:15

Really? Penalties for terminating the lease and needing a car after is surely reason enough?

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By DJKL
23rd Apr 2018 12:56

How to make a company car unavailable?

Buy a Lotus.

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By Dib
to DJKL
23rd Apr 2018 13:03

Lots Of Trouble, Usually Serious?

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By Slim
to DJKL
23rd Apr 2018 16:16

Great cars, no complaints.

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By Slim
23rd Apr 2018 16:16

has anyone argued these points with hmrc and been successful?

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By Slim
to Portia Nina Levin
23rd Apr 2018 16:37

I did look at the manual yes, it seems the only way is for the car to be undrivable as I assume there is no other way for am OMB to achieve this. However, sometimes its good to get experience of other accountants on what can sometimes be a grey area..

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to Slim
24th Apr 2018 00:05

Remove a spark plug and don’t replace it for 6 months. Car is undriveable and so unavailable. Job done.

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to atleastisoundknowledgable...
25th Apr 2018 10:39

atleastisoundknowledgable, so a repair that anyone can do in two minutes at home makes it unavailable and undriveable? Try telling that to HMRC or a FTT!

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to JDBENJAMIN
25th Apr 2018 11:08

I couldn’t change a spark plug. My wife couldn’t even point to one under the bonnet.

If you don’t like that, then find a friendly garage to take it and not release it to you for 6 months.

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By DJKL
to atleastisoundknowledgable...
25th Apr 2018 16:59

Given modern cars hide everything under plastic covers within the engine bay I am not that surprised, to change the spark plugs you need to find them.

During the snowy period I offered to jump start someone at the local Asda, took me over five minutes to find where the battery is hidden in a Mini Countryman (only bought it last June so I have an excuse for not knowing)

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By Ajtms
25th Apr 2018 10:59

I seem to recall that this was discussed in the Taxation Magazine recently and the answer was to do a SORN.

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25th Apr 2018 12:30

I know exactly how to do this after a year long tax enquiry into just this scenario:

1. You have a company policy set up that says as well as cars with benefits you can have cars where private use is forbidden by all employees.,

2. The company policy needs to say any private use of the car will result in legally enforceable disciplinary proceedings

3. The company writes a letter under the terms and conditions of the policy to the driver banning private use

4. The driver writes a letter acknowledging he will comply with company policy and the car will only be used for business use.

5. The driver must keep a mileage log of all the business only journeys driven, meticulously and make it available for the company to inspect. This needs to be in company policy too.

6. The driver should retain evidence of any journeys eg to visit customer X and copy of Xs email setting up appointment. This should be in co policy too.

4. Not a single use of the car can be made for private use not one not ever

5. The insurance is changed to business use only

6. The car must be stored on company premises. Or if a home worker outside registered office

7. It might help if the policy has a clause which says the driver must have an alternative car available for private use... possibly his spouses.

8. Any service records and Mot must tie in exactly to the mileage log

If they ask then expect at least 30 hours of an accountants time answering letters and explaining how it all tied together quoting the rules from booklet 480 the pool car rules and sections of the taxes legislation....

True story

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to Tom 7000
25th Apr 2018 17:16

Tom 7000 wrote:

I know exactly how to do this after a year long tax enquiry into just this scenario:

1. You ...

2. The ...

3. The ...

4. The ...

5. The ...

6. The ...

4. Not ...

5. The ...

6. The ...

7. It ...

8. Any ...

True story

Who says accountants can't count? ;)

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25th Apr 2018 15:29

Surely just take a photo of the odometer and that will date it to prove that it's not being driven?

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to rememberscarborough
25th Apr 2018 16:38

It’s not about whether it was driven or not, it’s whether it was available to be driven.

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By DJKL
to atleastisoundknowledgable...
25th Apr 2018 17:05

A photo might work with my Scimitar, half the front end removed, steering wheel and dashboard all out, total spaghetti of wires and heating ducts.

Maybe I should introduce it to my company, it can then pay for all the parts etc needed (New leather seat covers £700!!! etc) and once the company has expended all the money making it stunning it can then sell it back to me at then market value which will be circa 50% of the cost of the parts purchased. New cunning wheeze for cash extraction.

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to DJKL
25th Apr 2018 17:33

OMG youve just reminded me of the fact I used to sit inbetween my brothers on the back seat of one of those - not great on the then 5 hour journey to Anglesey!

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