Company car with no P11D value??

[rash_decision]

Hi, as per title, is this possible/legal?

There are 5 of us as managers on the same level/banding. 2 have a company car allowance, and the three of us left have been asking for the same. I was told last week that they would not be giving us the allowance, but a company car instead.

As this was the first company car I have been involved with, I did some homework, and after seeing how much tax I would pay on your fairly typical saloon ‘company’ type hack, to basically benefit the company, I spoke to HR and told them I would be declining the offer and continuing to travel as I do now, by using hire cars, flights or trains as applicable. The HR manager then told me they would be classing the car as ‘tool of trade’ and it would come with no P11D value to me so at no cost to me whatsoever.

I was out for lunch today with a crowd, and one of the guys I was with (my girlfriends step dad) said that this is a big no no, and HMRC wouldn’t accept a car as ‘tool of trade’ and said he would be very surprised if this didn’t bring tax implications my way. Can any of the learned on here she’d some light on this??

[Somebody]

If there is any element of private use whatsoever (commuting, weekend use) then it would be classed as a company car and would attract BIK.

If the car is made availabile to you solely for business travel and it's normally parked at the company then it would be classed as a pool car and there would be no BIK.

[rash_decision]

Thanks, this is as I suspected with my new found information.

I think I will be having an interesting conversation with HR tomorrow!

[Spitfire2]

HR manager needs a new job title if they dont understand such basic stuff.