Pool vehicle management allow fleets to maximise the utilisation of vehicles and ensure that the vehicle type matches the requirements of the job. Some organisations are even sharing their pool fleets with other organisations, further improving utilisation, and reducing the costs for all parties.
Hereof, how do you qualify for 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.
- 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.
Similarly one may ask, can you 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.
What is a pool car HMRC?
A car only qualifies as a pooled car if all the following conditions are satisfied: (a) It’s available to, and actually used by, more than one employee. (b) It’s made available, in the case of each of those employees, by reason of their employment.
What is pool fleet?
Pool fleet means a fleet of rental company trailers and semi-trailers having a gross weight in excess of 6,000 pounds or 2,721.554 kilograms, and used solely in pool operation, with no permanent base.
What’s a motor pool in the military?
a standby fleet of motor vehicles available for temporary use by appropriate personnel, as at a military or governmental installation.
What is a pool car service?
The pool car is kept in a company’s fleet and is interesting for employees who do not have to drive a company car on a daily basis. Pool vehicles are mainly used for business trips. The vehicles can also be used for private journeys if this is possible under tax law and is declared accordingly.
Can pool cars be taken home?
Company pool cars must be mostly kept on business premises overnight — and not at an employee’s home.
What is the difference between a company car and a pool 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.
Do I pay tax on a company pool car?
You do not have to pay or report on ‘pool’ cars. These are cars that are shared by employees for business purposes, and normally kept on your premises.
Can you claim AIA on pool cars?
Businesses are able to receive Annual Investment Allowance (AIA) on vehicles listed above because they’re not classed as cars. Lorries, trucks and vans are typically classed as main pool assets for the purposes of Capital Allowances therefore an 18% Writing Down Allowance is applicable.