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Pool or company cars?

05 January 2016
Issue: 4532 / Categories: Tax cases , Admin

A Jubb (TC4760)

Cars are available for private use

The taxpayer was director of a company that supplied modular homes in Europe. HMRC opened an enquiry because there were discrepancies between the taxpayer’s 2008/09 tax return and form P11D in relation to a company car. According to the latter form, the company made two cars available to the taxpayer, along with free fuel. The taxpayer said the vehicles were pool cars, although he accepted that in previous years he had had the benefit of a company car.

The matter proceeded to the First-tier Tribunal. The judge noted that the cars were kept at the taxpayer’s home address and that he was allowed to use them for private purposes. On this basis they were not pool cars but company ones. The taxpayer had made a careless error by not including the benefit in his tax return.

The taxpayer’s appeal was dismissed.

Issue: 4532 / Categories: Tax cases , Admin
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