Q. My company owns a car which is used during the day by various employees for business travel only. However, since there is no overnight parking facility at our business premises, one of my employees takes the car home each night and parks it outside his house. He does not use the car privately. Am I correct in assuming that no taxable benefit arises?
A.Unfortunately not. To qualify for exemption under the pool car rules, the vehicle must not normally be kept overnight on or near the residence of any of the employees. In addition, home to work mileage is counted as private use, so if the car is being taken home every night by the same employee then the private use is unlikely to be considered merely incidental. It is unlikely that HMRC would accept that no taxable benefit arises in this case.
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