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Conference terri::cars_uk

Title:Cars in the UK
Notice:Please read new conference charter 1.70
Moderator:COMICS::SHELLEYELD
Created:Sun Mar 06 1994
Last Modified:Fri Jun 06 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:2584
Total number of notes:63384

1210.0. "Can other drivers cause tax fraud ?" by SHIPS::WHITWOOD_N () Tue Sep 04 1990 14:13

    Can anybody out there tell me how the tax laws stand with regard to
    business miles driven by a third party.  For example, if I never do any
    business miles personally but allow my lease car to be used by other
    Digital employees for business purposes (and as a result the *car* does 
    2500 business miles), am I *legally* entitled to the tax benefit ?.
    
    The reason I ask is because I was always under the impression that all
    business miles were valid irrespective of the driver.  Recently
    however I have been told that if somebody else drives my car I am
    unable to claim milage expenses, as the miles driven would go against
    my name as business miles and amount to a tax fraud. The way around 
    this is for the driver to claim the expenses and reimburse me for the petrol
    used.
    
    Regards
    
    Nigel
     
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1210.1BIGHUN::THOMASThe Devon DumplingTue Sep 04 1990 17:3513
	To decide which tax bracket YOU fit into, you can only claim the
	business miles YOU do.

	The way the inland revenue knows how many business miles you do, is 
	via the P11D, these miles are taken from your expense forms.

	To claim business miles that someone else does - no matter who's car -
	is tax evasion, and illegal (if these miles would have taken you into 
	a lower bracket).

	Heather

1210.2YUPPY::FINNThu Sep 06 1990 17:204
    What about the other way round? Suppose you did n miles on business
    during a year, but did them in different cars, which because of their
    engine sizes were in different tax ranges? What about pool systems,
    where you take whichever car is available that day?
1210.3NEARLY::GOODENOUGHThu Sep 06 1990 17:579
    As far as I'm aware the tax is based on the availability of a car for
    your personal use.  I use two different cars in the year that my lease
    changes over (a simplified example), and I am taxed on the first car
    for the period I have it in my possession, and on the second car ditto.
    
    If you had a different car each day (how often does that happen?) *and*
    took it home, I imagine the taxman would work out some composite rate.
    
    Jeff.
1210.4poolcar =/= company carRUTILE::COXIt all comes ... from within ...Wed Sep 12 1990 15:227
    
    
    I think that there is an exemption here, I've heard alot of accounts
    of pool cars not being classed as your own company cars and are not
    taxable. Dunno if this was affected in this year's budget tho'
    
    Nik.
1210.5Definition of a pool carIOSG::MITCHELLElaineWed Sep 12 1990 16:0410
    
    I'm not sure but...
    
    To avoid being taxed for a company car - the pool car must not be
    available to you on a regular basis - IE you cannot take it home every
    night - and no one pool car is "yours" - (unless of course the company
    only has one:-) ), and the car must be available to other company
    employees.
    
    
1210.6a plan so sly,that if you put a tail on it...RUTILE::SMITH_ANo-one puts baby in the cornerWed Sep 12 1990 18:0511
    Rathole - or thought,
    
    what if...
    
    you got your company to change your title to 'Chauffeur' - and you had
    to be on-call 24 hr / 7 days. Therefore you have to have the car with
    you all the time...
    
    ...but no-one ever called you to drive ?
    
    AmS
1210.7IR will get you, anyway...CURRNT::RUSSELLMiddle-aged Mutant Hero Turtle (UK option)Wed Sep 12 1990 22:0517
    re .6;
    
    sorry, it doesn't work that way.
    
    There was a recent case involving a fire brigade officer, who was on
    call 24 hours a day, and provided with a car that had a blue flashing
    light and siren, and "Fire" (or whatever) written on the side.
    
    Since he took it home, the Inland Revenue classed it as a company car
    that he had the use of, and was therefore taxed on the benefit.
    
    I think they work along the lines of "If you take it home, you pay the
    tax". It's a long tradition that they guard jealously of making you pay
    full whack for commuting, with no allowances.
    
    Peter.
    
1210.8Won 2nd time I believe...BONNET::MARTINThe Corporate Rat - 828 6236Thu Sep 13 1990 16:386
    
    	But according to the Times Law Report he won his case on appeal, as
    the car was classified as special purpose beacuse it has various
    options, radios etc fitted.
    
    	Rat
1210.9So, fit a blue light..CURRNT::RUSSELLMiddle-aged Mutant Hero Turtle (UK option)Thu Sep 13 1990 18:006
    re .8;
    
    Ah, I see.... I must have missed the Times Law Report that day.
    
    Peter				:^)