This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.

Prestige cars were made available to director for benefit-in-kind purposes

By Mark McLaughlin, May 2021

Prestige company cars were made available to a director for benefit-in-kind purposes, and statutory off-road notifications and the need for management permission to use the cars under the company's handbook did not mean that they were not made available.

The first appellant (a company) ran a Ford car dealership. In 2001, the appellant company bought an expensive and rare Maserati, and in 2005 a Ford GT40 (a rare high-performance car). Following a PAYE audit in 2016, HM Revenue and Customs (HMRC) concluded that those cars had been made available to the second appellant (Mr N, a director) for periods longer than those in relation to which a benefit-in-kind had been declared.

HMRC issued National Insurance contributions (NICs) determinations to the company for the tax years 2010/11 to 2016/17, income tax assessments for 2012/13 to 2014/15 and 2016/17, and a closure notice for 2015/16. The appellants appealed. 

The First-tier Tribunal

Subscribe to the McLaughlin’s Tax Case Library to get instant access
to the Tax Case Library.
14 day free trial , 90 day money back guarantee
Subscribe

Related or similar articles

First-tier Tribunal erred in law by making a direction that a hearing be held in private
By Mark McLaughlin, March 2025
Share buybacks on which EIS disposal relief was claimed were within the transactions in securities regime
By Mark McLaughlin, August 2024
Non-receipt of HMRC ‘nudge’ letters constituted a reasonable excuse for late notification
By Mark McLaughlin, December 2023
RTI returns were required in respect of a one-person company
By Mark McLaughlin, October 2023
Employer Was Not Liable For Tax Not Deducted From Employee’s Earnings
By Mark McLaughlin, August 2017