Company car

scwazrh

If a company provides a car to the director who only uses that car for business purposes , is there any benefit in kind due ?

The car is parked overnight , weekends and any other non working hours at the company office and the director uses public transport to get to the office each working day .

Voltex

scwazrh wrote: »

If a company provides a car to the director who only uses that car for business purposes , is there any benefit in kind due ?

The car is parked overnight , weekends and any other non working hours at the company office and the director uses public transport to get to the office each working day .

Can all that be proved?

scwazrh

Yes.

pedronomix

it is effectively a pool car used by authorised staff for business use only. Who actually uses it is irrelevant. Might be an idea to establish this with Revenue.

scwazrh

pedronomix wrote: »

Might be an idea to establish this with Revenue.

Probably the way to go.
Will the revenue answer this type of question in writing?Don't want to get a " should be grand "answer and then have problems at an audit in the future and have no proof to back it up.

Take2Sean

Pretty sure you have to do a minimum of 20K+ miles per year on it to not have it as benefit in kind unless it's a commercial registered vehicle. Most accountants will tell you its not worth the hassle. Better off claiming back the civil service rates in expenses and have the car in your personal name

pedronomix

Take2Sean wrote: »

Pretty sure you have to do a minimum of 20K+ miles per year on it to not have it as benefit in kind unless it's a commercial registered vehicle. Most accountants will tell you its not worth the hassle. Better off claiming back the civil service rates in expenses and have the car in your personal name

Pool cars are just that. Your comment is off the mark as BIK refers to personal benefit/use.

Take2Sean

From revenue website -

There will not be a charge to tax in respect of a car which is in a "car-pool". A car can be treated as being in a car-pool if:

the car is made available to, and is actually used by, more than one employee and is not ordinarily used by one employee to the exclusion of the others.

pedronomix

Take2Sean wrote: »

From revenue website -

There will not be a charge to tax in respect of a car which is in a "car-pool". A car can be treated as being in a car-pool if:

the car is made available to, and is actually used by, more than one employee and is not ordinarily used by one employee to the exclusion of the others.

Not the situation that obtains here, did you actually read the original post. He does NOT use the car for SD&P!! Different case,

Take2Sean

I'm only saying because it's something that I looked at doing recently and my accountant advised me not to. But it would be dependent on your situation. I am the only employee of the company and I would not have had a personal car also at the time. He felt this muddies things and wasn't worth the hassle of explaining.

Instead I bought a car in my own name and used the civil service rates for claiming back expenses. What I'm saying is this may be a better option, more beneficial and also drawing less hassle and work on yourself.

Mileage and expenses, cars are something that revenue are cracking down on. I have read the OP but I just wonder is he thinking he could use it as a work around of not having a personal car.

Just seems like a needless grey area to me..

pedronomix

Answering questions that were never posed in the first place only leads to unnecessary confusion. If your home and place of work are the same location, the result might be different.

Take2Sean

pedronomix wrote: »

Answering questions that were never posed in the first place only leads to unnecessary confusion. If your home and place of work are the same location, the result might be different.

meh....