Taxable Benefits on private cars

[bazzamanaman]

I've just started as the Finance Manager for a small, family owned business. They've always used external accountants (and by the looks of things, not particularly good ones) in the past, so I've come in and found all kinds of issues that I am busily resolving.

One such issue concerns the cars of our directors. There are three directors and they each own their own cars, which they use for business now and again and for which they claim business mileage for. Everything so far, so good. However, the cars are insured under the company policy which I would assume would give rise to a taxable benefit. My question is, is this correct and how would I go about assessing the value of the benefit. The company insurance covers these three vehicles, several other company cars and our fleet of vans and lorries under one policy for which we pay one annual premium. How do I value the benefit to the directors of having their private vehicles insured by the company (i.e. for P11D purposes)?

[mullet]

How do I value the benefit to the directors of having their private vehicles insured by the company (i.e. for P11D purposes)?

The cost to the provider less any amount made good by the director/employee. You will need to ask the insurer to break down the overall premium if possible, or failling that establish the typical annual premium for each director in their particular circumstances.