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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
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Experience:  International tax
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I have a company car that I can use for private use and I

Resolved Question:

I have a company car that I can use for private use and I reimburse my private fuel but my question is, is there a way I can avoid paying the benefit in kind tax by not using the car privately. I use my own car at the weekend and my company car is not suitable for my dogs or for going clay shooting so I am paying over £3000 per year fo ra car I can't use. I do 30000 business mikes a year approximately.
Many thanks
Andy
Submitted: 11 months ago.
Category: Tax
Expert:  TaxRobin replied 11 months ago.

Hello

To be exempt, your employer must tell you not to use the vehicle for private journeys and check that you don’t.

You just not using the vehicle for private use is not enough. Your employer must have the policy that it is only for business purposes and no personal use is allowed.

If the car is available to you for private use which could mean you take it home and have access to it then HMRC could still question that.

Your employer's policy is to make the car available and that is why they most likely answered with "that's just the way it is".

Customer: replied 11 months ago.
Hi, thanks for the answer , so if I asked my employer to tell me not to use the car, they already tell me I have to log the customers I visit and my opening and closing mileage each day do you think that would be sufficient proof for the Tax Office and how would I go about notifying the tax office please if it was?
Thanks
Andy
Expert:  TaxRobin replied 11 months ago.

That would not be enough. The car cannot be in your possession away form work. You cannot take it home and the policy of business would need to be changed.

Your employer would notify HMRC if they changed.

Customer: replied 11 months ago.
Hi, ok I understand , I have no choice but to take it home as I work from home and the office is 110 miles away from my home.
I don't work set hours and could be away from home one or two nights . Could I ask them to insure it for business only and fit a tracker ?
It's hardly a benefit in kind if I can't use it outside work and I have two of my own vehicles that I do use but appreciate that's the law.
Thanks
Andy
Expert:  TaxRobin replied 11 months ago.

You are most welcome.
A positive rating is appreciated so I get credit for the response.

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