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.

SORN did not mean that a company car was unavailable for private use

By Mark McLaughlin, April 2023

A statutory off-road notification did not mean that a company car was unavailable for private use, and an appeal against discovery assessments for all relevant tax years except one was dismissed.  

The appellant company ran a car dealership. In 2001, it 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 first appellant (TN) for periods longer than those for which a benefit-in-kind had been declared. HMRC issued income tax assessments for the tax years 2012/13 to 2014/15 and 2016/17 and a closure notice for 2015/16, and National Insurance contributions determinations to the company for the years 2010 to 2017. The appellants appealed. 

The First-tier Tribunal (FTT) concluded it was likely that: (1) the Maserati was used by TN for personal as well as business purposes from 2011/12

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

Filing delay exacerbated by HMRC’s electronic communications was reasonable excuse for late tax return
By Mark McLaughlin, August 2025
‘Salaried members’ rules did not apply to certain hedge fund investment portfolio managers and others
By Mark McLaughlin, November 2023
Social media posts by a furloughed employee constituted work
By Mark McLaughlin, July 2023
Shares carried a preferential right to dividends
By Mark McLaughlin, April 2021
First-tier Tribunal erred in law and HMRC’s discovery assessment was invalid
By Mark McLaughlin, October 2020