I hope someone can answer this question for me, my own accountant cannot.
If two employees/directors are issues jointly with a company car, how would the £20k P11d value be declared? Would each employee have £10k added to their p11D or would one have to take the whole £20K?
It is a small Ltd Co with two employee/directors who are partners personally, as well as in business. They would both use the car for business as well as personally. The car has a BIK rate of 21% for the current year.
Whose name is on the log book (v5) of the car as the registered keeper? There's your answer (even company cars have to be registered to a person and there can be only one keeper).
As they are related parties and there is private usage there's no point looking at the pool car option.
Are the directors certain that company car is the way to go rather than a company purchase converted to seperate DLA's and then charge business mileage at 45p/25p?
Welcome to the forum Stephen,
kind regards,
Shaun.
Nothing in the above should be construed as tax advice. Speak with the company accountant and question whether the above treatment is viable for the given scenario.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Whose name is on the log book (v5) of the car as the registered keeper? There's your answer (even company cars have to be registered to a person and there can be only one keeper).
I don;t know the answer but our company cars are registered in the company name, not to a person.
Whose name is on the log book (v5) of the car as the registered keeper? There's your answer (even company cars have to be registered to a person and there can be only one keeper).
As they are related parties and there is private usage there's no point looking at the pool car option.
Are the directors certain that company car is the way to go rather than a company purchase converted to seperate DLA's and then charge business mileage at 45p/25p?
Thanks Shaun
The car hasn't been obtained yet so nothing on the log book at this time. Happy that company lease car is the right option in this case, just not sure how to P11D it when the car is shared between two employees/directors
You need to go to EIM25200 www.hmrc.gov.uk/manuals/eimanual/EIM25200.htm which goes through the guidance of how to do this. I won't embed the link, as the site usually then decides I'm spamming it & then won't post, but hopefully you will be able to cut & paste from there.
You need to go to EIM25200 www.hmrc.gov.uk/manuals/eimanual/EIM25200.htm which goes through the guidance of how to do this. I won't embed the link, as the site usually then decides I'm spamming it & then won't post, but hopefully you will be able to cut & paste from there.
Hope that helps
Helen
Thanks helen, that seems to be heading in the right direction although much of it went over my head. It looks to me then, that we should put 50% of the P11d value of the car on each employee's P11d. Would anyone more knowledgeable than me like to concur?
You have to calculate each of them separately, and then reduce the full benefit for each employee on a just and reasonable basis. So if you can show that they have the car half the time each, then you can reduce each of them accordingly. Remember, as with anything HMRC, you will (potentially) need to be able to show how you came to the conclusion as to what was just and reasonable for each of them.
The only twist that is bothering me here is the related parties element (as per Shaun, above) - it may be worth a call to HMRC to ask if this makes any difference, or if you just apply EIM25200 in the usual way.
