Pitfall with cars – No 1 – pooled cars (not pedalos!)
It is very difficult to make a company car a pool car and thereby avoid the benefit in kind provisions. To be exempt from such charges the car;
- Must actually be used by more than one director or employee
- Should not ordinarily be used by one director or employee to the exclusion of all others
- Should not normally kept overnight at or near the home of the director or employee except where it is kept overnight on premises occupied by the employer
- Should not be used by anyone for private (including home to work) travel at all expect private use that is ‘incidental’ to business use.