company car with zero private use

[nickm2001]

My company wants me to have a car to reduce the usage of my private vehicle.

I'm unimpressed with their choices of car and reluctant to pay anything to drive a car I don't want.

I'm thinking of accepting the car but only using it for work, keeping it at home and driving my own car for any private mileage.

Their policy is apparently to provide a fully serviced vehicle, I simply claim back business mileage at 13p per mile.

They want me to pay a contribution for the vehicle which apparently gets over the tax situation.

If I simply park the vehicle up (there is no secure parking at the branch I use as a nominal base) and only ever use it for business use, is there a tax liability?

If anything I should charge my employer for storage really!

[hashman]

To get over the "available for private use" test the terms under which the car is provided must prohibit its use for private purposes and it must not in fact be used for private purposes. Driving it home will be private use.

[nickm2001]

I thought that taking it home would be ok if there was no secure parking for it at work. If it were left there it wouldn't have any wheels on it after a weekend, probably not after an evening.

I have a "nominal" office base but that is simply so that I don't charge business mileage for that distance each day. In practice I rarely go to that branch as I run 16 altogether and I have to visit two or three a day as well as meetings at regional offices.

I'll obviously have to take this point up with the tax office and the company.

[Bob Jones]

As a retired Inland Revenue Tax Inspector you will not win this case - if the car is available you will be charged on the benefit. I have argued more complex cases than this before the Commissioners and not lost a single case. You will be charged even if you are banned from driving - I am sorry but you are on a loser - don't pay any fees to anyone who says that you will win the argument as you will not - and you will be throwing good money after bad ----- the car fuel benefit is different .... you will avoid that of you can demonstrate that you have paid for all the private fuel ....

Bob Jones
bob@internet-taxation.co.uk

[The Hippo]

The key is if the vehicle is available for use, whether you do in fcat use it will not alter the taxation consequenses.

[skinners]

My company have a car which they have offered me to use for my sole use on business mileage BUT not to be used privately -if I accept this how do I stand tax wise if at all?