Summary
The conditions for company vehicles to be ‘pool cars’ were not considered to have been satisfied on the facts of the case, and the cars (and car fuel) constituted a taxable benefit for the company’s two directors.
Background
The company had three cars. One of them (an Audi) was used by one director, and another car (a Mercedes) was used by the other director. The company purchased all fuel for the cars. Due to security and vandalism issues, the cars were not left at the company's premises overnight, but were parked by the directors at their homes.
HMRC issued a decision to charge Class 1A National Insurance contributions on car and fuel benefits, which was the subject of an appeal. HMRC also considered that the directors were liable to income tax on the car benefits and car fuel benefits.
The First-tier
