Personal tax - Company cars and vans

Employee pool car agreementBanning private use is essential for a car to be considered a pool car by HMRC. A verbal ban may work but it's more sensible to require the employee to sign an agreement that specifically states that the car is not to be use... Read more

Company car lump sum contribution agreementThe taxable benefit in kind for a company car can be reduced if the director or employee the car is made available to contributes to the cost of its purchase. Capital contributionA capital contribution made ... Read more

Company car running cost contribution agreementIf an employee or director is required to and actually pay their employer towards the running costs of their company car it reduces the taxable benefit in kind. To ensure the contribution is effective th... Read more

Employer/employee company car and van fuel agreementTo avoid a tax charge arising where you provide an employee with fuel for their company car, have an agreement requiring them to reimburse the cost.Fuel benefit chargeIn addition to the company car b... Read more

Cars and car allowances policyIf you provide your employees with a car you can use a policy to set the detailed terms and conditions of its use. However, you must now provide the key information relating to benefits, including company cars, in the wr... Read more

Employee business mileage recordEmployees and directors are required to keep a record of journeys for which they receive a mileage allowance from their employer or claim a tax deduction for business travel. A copy of the record should be retained by ... Read more

Pool car journey recordFor a company car to count as a pool car (meaning that employees who use it aren't taxed on it as a benefit) it must not be used for private journeys. HMRC may ask for evidence of this. You should maintain a log of all journeys ... Read more