Old Question

[Mustang]

How do they work out the category of "available for private use" when it comes to Company cars?

We are replacing Mrs Mustangs car in a few months and I am going to use her old one as a run around. It's not worth much but it would be better for me than using my Mustang for around town and daily use. If I used the runaround solely for work and used the Mustang outside work would I still be taxed on it if MyCo bought it?

Look forward to the replies....

[oraclesmith]

My understanding is you get the full allowance if the vehicle is left on office premises outside work hours and only used for business use. For example, a plumber would drive to the yard, pick up the firms van, do a days work and then drop it off at the yard and drive their own car home. I steer clear of having cars on the company because it's fraught with taxation issues.

You might get away with it if you had a signwritten van or you were a sales rep and it might be worth it for a new vehicle, but with a cheap, older vehicle you'd may be better off paying yourself the 40p a mile allowance.

[Nixon Williams]

Generally a pool car would be fully claimable but this is not practical for contractors as there tends to be just one employee!

So you will be assumed to have private usage and so the tax will be due!

Remember that the tax is based on the list price when new and the CO2 emmissions etc so generally not a good idea.

Alan

[Mustang]

Thanks Alan. I think I have looked at this from all angles now and will finally give up on the idea.

The Company Car really is dead and buried!! RIP Thanks Gordo!