Pool Cars – Do you have a ‘no private use’ Policy? Reply

Pool Cars

The latest case Vinyl Design Ltd v HMRC [2014] TC 03345 highlights why policies and mileage records are important.

Here are the facts of the case:

  • The company’s only 2 employees were the directors
  • They had different cars for private use
  • They argued the Pool car was only for Business Use
  • They had no policy
  • They had no Mileage Records
  • Pool Cars kept at home due to risk of vandelism

Not surprisingly HMRC won the case !!

So what should you do to prove there is no private use:

  1. Keep the car on the company’s business premises
  2. Keep the keys at the company’s business premises
  3. Prepare a Board Minute
  4. Make sure your contract of employment bans private use
  5. Keep a mileage log
  6. Insure the car principally for business use

HMRC have specific rules on keeping vehicles at home in EIM23465

Even if you do meet the 60% rule you still have to prove ‘no private use’


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.