Company car ‘availability’ during the Covid-19 pandemic

Legislative test

Deduction for periods of unavailability

  • where the car is made available during the tax year, the period from the start of the tax year to the date on which the car was first made available to the employee;
  • where the car ceases to be available to the employee throughout the whole tax year, from the date that the car ceases to be available to the end of the tax year; and
  • periods of 30 days or more throughout which the car was not available to the employee.

Unavailability during Covid-19: HMRC’s stance

  • instructed to not use the car
  • asked to take and keep a photographic image of the mileage both before and after a period of furlough
  • unable to physically return the car or the car cannot be collected from the employee

Worth a challenge

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