Can one person have 2 company cars?

[skilly1]

Can a Director have and declare 2 company cars, and give one to their partner? If so can they both be fully electric and the Director pays 0 BIK on them as they are both electric? They would be declared under the Directors BIK form.

Partner is not employed by the company.

ETA - clear up wording.

Edited by skilly1 on Tuesday 8th December 13:13

[Justin85]

Why not? You can have as many as you want. They will be added to your salary as a taxable benefit, just like the first company car. The fact that your partner drives one or both cars too is neither here nor there, as long as insurances provides for he/she to do so etc.

[isleofthorns]

Justin85 said:

Why not? You can have as many as you want. They will be added to your salary as a taxable benefit, just like the first company car. The fact that your partner drives one or both cars too is neither here nor there, as long as insurances provides for he/she to do so etc.

could be wrong, but I think the BIK would get apportioned relative to the use of each car.... perhaps one of the resident accountants can clarify..

[trickywoo]

Justin85 said:

Why not? You can have as many as you want. They will be added to your salary as a taxable benefit, just like the first company car. The fact that your partner drives one or both cars too is neither here nor there, as long as insurances provides for he/she to do so etc.

I think op is suggesting all money comes out of the company as is policy at the moment for electric.

If this is what he proposes I would suggest the second car would be a massive red flag at hmrc and lead to trouble for him and in turn mrs.

[skilly1]

trickywoo said:

Justin85 said:

Why not? You can have as many as you want. They will be added to your salary as a taxable benefit, just like the first company car. The fact that your partner drives one or both cars too is neither here nor there, as long as insurances provides for he/she to do so etc.

I think op is suggesting all money comes out of the company as is policy at the moment for electric.

If this is what he proposes I would suggest the second car would be a massive red flag at hmrc and lead to trouble for him and in turn mrs.

That’s why I’m asking, as not going to do anything illegal but can’t find anything to say I can’t do it.

[LimJim]

trickywoo said:

I think op is suggesting all money comes out of the company as is policy at the moment for electric.

If this is what he proposes I would suggest the second car would be a massive red flag at hmrc and lead to trouble for him and in turn mrs.

I've been thinking of doing exactly this. Replacing our 2nd car, mainly driven by the better half, with a 2nd company EV in my name.

Why is it a red flag? What rules forbid it? Isn't this what BIK is for? What's to stop me buying 10 EVs under current rules?

BIK is 0% this year (going up to 1% next year)

[C350Akra]

isleofthorns said:

could be wrong, but I think the BIK would get apportioned relative to the use of each car.... perhaps one of the resident accountants can clarify..

Cannot be a benefit in kind to the partner unless they are employed by that company. BIK can only be applied to an employee of the company giving the benefit.

[skilly1]

C350Akra said:

isleofthorns said:

could be wrong, but I think the BIK would get apportioned relative to the use of each car.... perhaps one of the resident accountants can clarify..

Cannot be a benefit in kind to the partner unless they are employed by that company. BIK can only be applied to an employee of the company giving the benefit.

It would be on my benefit on kind, not the partner. I would just let her use it.

[Sheepshanks]

A lot may have changed but my missus used to work for the Contributions Agency when it was separate from HMRC. She did an inspection at a company and they had two Merc CLKs, but no employers NI was being paid on them. The accountant said there was none due - as they were used by the directors wives who weren't employees.

They weren't very happy with the bill!

[LimJim]

That's my understanding, just ENICs And BIC to pay if registered under my (director and employee) name.

So just ENICS in practice

[Corvid-2020]

I've got two jobs with two car allowances but only one car! What is the implications of that. Plus teh wife gets a car allowance and as we work different shifts / rota due to childcare (one of us always at home) we only need one car so her allowance also pays for that car.

Both insured for business. All employers "safe drive" schemes passed wrt insurance etc.

[Mattt]

Car allowance is simply un-pensioned salary.

[jzma]

Did you manage to get an answer for this?
I am in a similar position and have heard mixed answers from colleagues and two accountants?

[skilly1]

Yes it turns out you can have as many company cars as you want as long as you pay the relevant tax.

[DaveA8]

Not sure if it's still relevant but at one stage, 2 cars listed to a director actually activated some kind of surcharge but that was around 2005

[ecs]

I asked my accountant about this as we were looking at a second EV for my wife and his view was that HMRC would treat it as tax avoidance and recommended against it (company has single employee/director, i.e. me).

[ntiz]

I have a RRS P400e and a Tesla Model S in my company as both owned by me. Wife drives the Tesla most day.

I pay BIK on both so non on the Tesla. My accountant advised me I could have as many as I like as long as I pay all the correct tax on them.

Edited by ntiz on Monday 24th January 12:15

[lizardbrain]

ecs said:

I asked my accountant about this as we were looking at a second EV for my wife and his view was that HMRC would treat it as tax avoidance and recommended against it (company has single employee/director, i.e. me).

If the car is purely for personal use I can’t see the logic why it’s tax avoidance?

Or at least, why one car isn’t tax avoidance and two cars is?

[MaxFromage]

ecs said:

I asked my accountant about this as we were looking at a second EV for my wife and his view was that HMRC would treat it as tax avoidance and recommended against it (company has single employee/director, i.e. me).

You need to ask your accountant again, as that's bad advice.

[pacenotes]

ecs said:

I asked my accountant about this as we were looking at a second EV for my wife and his view was that HMRC would treat it as tax avoidance and recommended against it (company has single employee/director, i.e. me).

Couldn't you give her 1 share and make her a company director so you could get her a car/phone through your company.

We have loads of lovely directors' 'lunch' meetings.