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  • Company Cars after lockdown

Company cars after lockdown

Company cars after lockdown – are your staff paying tax on cars they’re not using? 

  • Company car users still suffer a benefit in kind tax charge.
  • To pause this benefit in kind tax the car must not have been available for the last 30 day period.
  • A company car is still classed as available for private use even if: they have been told not the use the car, take and keep mileage count of the time it is with employee or if the employee makes a declaration that it has not been used. 
  • To stop the benefit in kind the only real way is to hand the car back and the 30 days has passed.  Even with coronavirus the keys must still be handed back to the employer even if you can’t collect the car due to the virus. 
  • You could consider selling the car to a leasing company and then having a contract hire back with the leasing company this is called sale and leaseback. This lease rentals means the cars are corporation tax deductible and the business will no longer have a risk associated with depreciation.

Call Folkes Worton on 01384 376964

Accounting for the Future with Folkes Worton