You are probably aware that pool cars are not treated as company cars for tax purposes, so nobody is subject to a benefit in kind charge for using them. This makes them quite an attractive asset.
However take care, HMRC are taking increasing interest in pool cars, as shown by a number of recent tax tribunal cases.
The rules to establish what is a pool car are very specific. For instance the car should not normally be kept overnight at the home of any one employee, it should made available to and used by more than one employee and any private use should be incidental to the business use.
These conditions must be met to avoid employees being subject to a benefit in kind tax charge.
If you are buying company owned cars for use as pool cars, you must have robust systems in place to support this. Keeping records in a form that can be supplied to HMRC if they ask may also prove very worthwhile.
For more information, please contact Lesley Sutton on 01484 550037 or email email@example.com.