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No taxable Car Benefit for disabled drivers?

No taxable Car Benefit for disabled drivers?

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I have just taken on a client.

A limited company with one director --- the director is disabled (can't walk too well). I believe registered disabled.

He tells me that his previous accountant said that he does not have to pay tax on his company car as he is disabled.

I realise that there are special rules which apply to the extra cost of an automatic car compared with a manual car. But to say that the car is completely tax free seems a load of tosh to me?

Dos anyone know if I am missing something?? I don't want to give this bad news to a new client if his old accountant was right.


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11th Feb 2014 12:04

There is an exemption

Extract from 480 benefits guide:

Exceptions to Car or Van benefit charge


Cars provided for home to work travel to employees who are disabled

if all these conditions are met:

– the car has been adapted in accordance with the employee’s needs (or is an automatic where the employee’s disability prevents them from driving any other car)

– it is only made available for business travel, home to work travel and travel for training within one or more of Sections 250, 255 or 311

– other private use by the employee and any other person is prohibited

– no other private use is in fact made of the car


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