The following Employment Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
Employers may make pool vehicles available that can be accessed by a number of employees. These will usually either be cars or vans.
There is a general exemption from tax for pool vehicles. If the vehicle meets the requirements of the exemption, there is no charge to tax. However, if the exemption is not met, then a charge to tax arises under the company car or company van benefit legislation. The benefit is then attributed to the employee dependent upon the proportion of the tax year that the vehicle is available to them.
There is a general exemption from tax for pooled vehicles as long as all of the following requirements within ITEPA 2003, ss 167 and 168 are met:
the vehicle should be made available to more than one employee. The vehicle should also be actually used by more than one employee. For example, if only one person has use of the vehicle, you should consider the company car / van rules described in the Company cars or Company vans guidance notes. If the vehicle is only ever used by one person, then as a point of fact, it is not used as a pool vehicle and is really available for that employee’s exclusive use. This triggers a benefit charge. Records of individuals using the vehicle should be kept to prove who has actually used the vehicle. HMRC guidance is at EIM23450. Experience suggests that HMRC focuses more keenly on pool cars (rather than vans). The company car is clearly a more significant taxable benefit than a company van, so the potential underpayment is likely the motivator. It must be clearly demonstrable to HMRC that more than one person can, and does, use a vehicle for it to be considered a pool vehicle
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