Letter to HMRC regarding pool car status
A pool car can be very tax efficient but in order to get one past HMRC you’ll need to meet some strict conditions. To avoid uncertainty, use this letter to obtain confirmation from HMRC that the terms on which the car is used make it a pool car.
-
New HMRC guidance on winter fuel payments
HMRC has released new guidance on the recovery of winter fuel payments. What do you need to know?
-
Festive tax breaks for remote workers
You’re familiar with the tax break for Christmas parties but you now have a few remote workers, and the company will need to reimburse their travel and accommodation costs if they attend an event. Which costs count towards the tax-free limit and how can you manage any overspend?
-
New process for some exports starting in Northern Ireland
Starting next month, businesses that import goods via Northern Ireland will need to change their processes. What do you need to know?
No private use
Get a pool car past HMRC and you can secure some excellent tax savings - no taxable benefit on the driver, no fuel benefit charge and no employers’ NI. But to obtain this status, you’ll need to gather evidence together about the use of the pool car.
Strict conditions
The conditions that have to be met are: (1) it must be available to and actually used by more than one employee; (2) it must not be used by one employee to the exclusion of others; (3) it should not normally be kept overnight at an employee’s home; and (4) it must not be used for private journeys except as a small part of a business journey. Given that the rules provide a total exemption from any tax charge, it’s not surprising that HMRC applies them very strictly.
Confirmation
Use our Letter to HMRC Regarding Pool Car Status to work through what HMRC is after. Send it in with copies of the employees’ driving licences and the Pool Car Journey Record. The decision about whether the vehicle will be accepted as a pool car will normally be taken by HMRC (at inspector level), although an appeal may be made on the issue to the First-tier Tribunal.
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.