Can I Furlough My Company Car?

During the lockdown period many employees and directors have not been using their company cars.  The vehicles have therefore  been sitting idly on driveways. You may think that under the circumstances this would mean that the benefit of having a company car does not apply but, unfortunately, HMRC do not agree.

They have recently confirmed that there continues to be a taxable benefit unless the car is unavailable for private use for 30 or more consecutive days. HMRC continue to regard a car as available to use unless the key or fob is returned to the employer or to a third party as instructed by the employer.

The information in this blog provides only an overview of HMRC guidance and legislation in force at the date of publication and no action should be taken without consulting the detailed HMRC guidance and legislation or seeking professional advice.  Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this blog can be accepted by the firm.