A pool car is a company vehicle that is available for use by employees of that company. Generally, it would be left in the company’s car park for use for company business by whoever needs it.
Accordingly, can you use company car for personal?
Many companies are allowing their employees to drive business vehicles for personal use, whether it’s an owner driving to the store or an employee running an errand. Although it appears to be harmless, allowing company vehicles to be used for personal use opens up your business to a significant amount of legal risk.
In this manner, how do company cars work UK?
A company car scheme is where a company offers its employees a vehicle for personal and business use. Company cars are usually offered to those who need to drive as a requirement of their job or to other employees as an additional work perk.
Do I pay tax on a company pool car?
AS an employee you do not have to pay company car tax on a pool car, no matter how often you drive it. As long as the use of the pool car is business use only – and you don’t take it home at night or use it for commuting between your home and your place of work.
Can I claim VAT back on pool car?
There is a general prohibition on recovering VAT on cars other than those which are used exclusively for business purposes. A pool car, if it can be demonstrated that it is only used for business purposes and only intended to be used as such can qualify for VAT recovery.
Can a company buy a pool car?
To qualify as a pool car during a tax year, the business must be able to prove that the car or cars are shared by employees for business purposes, and are normally kept on your premises overnight. Pool cars are not treated as a ‘perk’ of employment, and therefore employees are not liable to BIK payments.
How do you qualify for a company car?
How does a company car scheme work? To qualify for a company car scheme, employees usually need to be in a significant or permanent position within the business and have a regular work pattern. Also, once they join the scheme, their wages must not drop below the national minimum wage.
Is a company car worth it?
A company car can be great for those who commute lots of miles to benefit as the vehicle is paid for meaning you don’t have to worry about unexpected costs. Car allowance is less common but offers more flexibility as the money can be used to purchase a new set of wheels or pay its running costs.
What is the difference between a pool car and a company car?
The difference between a pool car and a company car:
As already explained, a pool car is a vehicle that is most importantly available to all employees for business purposes only. By contrast, a company car is often made available to individual employees and allow for them to use the vehicle for their own private use.
How do I avoid paying tax on a company car?
Avoiding a company car tax charge
- The car is used for business purposes and any private use of the car is incidental.
- Private use should account for no more than 5% of the car’s annual mileage on an irregular basis.
- The same car not used exclusively by one or two employees in a tax year.
Can you keep a pool car at home?
Company pool cars must be mostly kept on business premises overnight — and not at an employee’s home. Of course, there may be times when keeping the vehicle at an employee’s home overnight is essential.