Avoiding co car tax if not used for private use
Avoiding co car tax if not used for private use
Author
Discussion

Leggy

Original Poster:

1,029 posts

253 months

Tuesday 17th March 2015
quotequote all
I interviewed someone the other day that reckons that if you work from home and have a company but only use it only for business you don't have to pay car tax.
He said you needed a declaration from your company though to back it up.

bp1000

873 posts

210 months

Tuesday 17th March 2015
quotequote all
Presumably he's talking about BIK?

He needs to be careful as BIK is still chargeable even if you declare it for business use as technically it is freely available for private use.

Only exemption I know of is pool cars.


TwigtheWonderkid

49,247 posts

181 months

Tuesday 17th March 2015
quotequote all
It can be done. But you need to get your fleet insurers to issue as business use only certificate, which many will not do. If they will, you can submit that document to your tax office as proof that it's effectively a pool car used for business only and never used for pleasure use and not available for pleasure use do to insurance restrictions.

Pool cars normally have to be kept at the business address but the tax office have in the past accepted a business use only cert as proof that the car is used purely for business but the user works form home.

V8forweekends

2,501 posts

155 months

Tuesday 17th March 2015
quotequote all
HMRC won't wear this if they have a proper look as it's not what the BIK rules say. Pool cars can't be available for the exclusive use of a single driver.

don'tbesilly

15,362 posts

194 months

Tuesday 17th March 2015
quotequote all
https://www.gov.uk/expenses-and-benefits-company-c...

Extract:

2. What's exempt
You may not have to report or pay anything to HM Revenue and Customs (HMRC). To be exempt, your employees must use the car or fuel in one of the following ways.

Cars available for business journeys only
Business journeys are either:

journeys that are part of your employees duties, eg a service engineer travelling to an appointment
journeys an employee has to make to get to a temporary workplace
To be exempt, company cars used for business journeys must not be available for employees’ private use.