Within businesses, there is often confusion between pool vehicles and company vehicles. Pool vehicles are exempt from a benefit-in-kind charge provided certain conditions are met.
Company vehicles are taxable. It is vital to categorise your vehicles correctly and maintain records as evidence.
A pool vehicle is exempt from the benefit-in-kind regime if all these requirements are met:
If all these requirements are not met then the vehicle may be classified as a company vehicle and liable for tax.
Hallidays recommends if you have pool vehicles you should maintain records to evidence how they are used within your business or organisation. These should include:
Ensure you keep copies of relevant car insurance policies. These are often reviewed by HMRC as evidence of who has access to drive a motor vehicle.
If you would like to discuss whether a business vehicle falls under the legislation of a pool vehicle or company car/van our specialist experts are here to help. For further information on tax rates and allowances please visit https://www.hallidays.co.uk/resources/tax-rates-and-allowances or contact the tax team on 0161 476 8276 or email firstname.lastname@example.org
Posted 16th November 2016
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