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Pooled cars and vans

The rules governing pooled vehicles.

Numera can advise employers in the London area on the use of pooled cars and vans. Here is an overview of the main considerations...

Some employers, or groups of employers, find it convenient to have one or more cars or vans that are readily available for business use by a number of employees. The cars or vans are not allocated to any one employee and are only available for genuine business use. Such cars and vans are usually known as pooled cars and vans.

No car or van benefit arises on a pooled car or van providing that, in the relevant tax year, it satisfies all the following conditions:

  • It was made available to, and actually used by, more than one of those employees;
  • It was made available, in the case of each of those employees, by reason of the employee's employment;
  • It was not ordinarily used by one of those employees to the exclusion of the others;
  • In the case of each of those employees, any private use of it made by the employee was merely incidental to the employee's other use of it in that year. The use of a car or van for what is primarily a business journey, but which includes some limited private use, would satisfy the words merely incidental to; and
  • It was not normally kept overnight on or in the vicinity of any residential premises where any of the employees were residing, except while being kept overnight on premises occupied by the person making it available to them. HMRC will accept that a car is not normally kept overnight at employees' homes if the total number of nights on which it is taken home by employees, for whatever reason, is less than 60% of the total number of nights in the period under review.

If you are an employer in the London area and would like more information on pooled cars and vans, contact Numera.

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Company details

020 7794 5757

Numera, 4th Floor Charles House, 108-110 Finchley Road, London NW3 5JJ

Numera is a trading name of Numera Partners LLP | Company Registration No. OC365787 | Place of Registration: England & Wales | Registered to carry on audit work in the UK by the Institute of Chartered Accountants in England and Wales.

About us

Numera is a newly established forward-thinking firm of chartered accountants, with over 25 years in experience of audit, accountancy, taxation and business advisory services.

We work with clients in a large variety of industries and sectors; from sole traders to multi-million pound turnover organisations. We aim to create and maintain a close relationship with our clients. By being so involved, we are able to identify opportunities for our clients as well as possible risks that our clients may be faced with.

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