If another employee shares your company car, is there still the same amount of company car tax to pay a reader wanted to know
Business Car Manager: Editor’s Blog
THE PHONE rang yesterday lunchtime with a polite question from one of our readers: do I have to pay company car tax if the car is not available to me all the time?
There are reductions if the car is not available for a period of more than 30 days. But the reader’s situation was different.
He was changing jobs and while he would get a new company car, there would be periods during the month when he would be in the office for meetings, during which time the company would allocate his car to someone else should it be required during the day. At the end of the day, the reader could then drive his own car home.
The key point is that this Business Car Manager reader had the car available to him for commuting – a benefit. Hence, company car tax applies, even if other drivers from the same company were able to use his car during the day – a sort of ‘pool’ car.
Slightly tough, I know – would it ever feel your car? But possibly a pragmatic decision by the reader’s employer trying to cut down on costs. Of course, one thing that the reader would have to be careful of is that he gets full compensation for the fuel used.
If you have any questions about company cars, or running business cars, please don’t hesitate to get in touch. If I can’t help, then I have an expert panel who can. Just use the email address below.
If you want to know more about company car tax, then download our free TOTALCard Knowledge Bank factsheet by clicking on the highlighted link below and the download will begin automatically: Company Car Tax.
