Pooled cars and vans

BPU can advise employers in the Cardiff 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 Cardiff area and would like more information on pooled cars and vans, contact BPU.

Home | Contact us | Accessibility | Disclaimer | GDPR (including Standard Terms of Business) | Help | Site map |

© 2018 BPU Accountants. All rights reserved.

We use cookies on this website, you can find more information about cookies here.


BPU Chartered Accountants is the trading name of BPU Ltd Company number 3723948 registered in Wales. Registered to carry on audit work in the UK and Ireland and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales.

BPU Financial Solutions Ltd is an Appointed Representative of ValidPath Limited which is authorised and regulated by the Financial Conduct Authority. ValidPath Limited is entered on the Financial Services register (www.fca.org.uk/register) under reference 197107.

BPU Accountants, Radnor House, Greenwood Close, Cardiff Gate Business Park, Cardiff CF23 8AA
BPU Accountants, The Counting House, Pound Field, Llantwit Major, Vale of Glamorgan CF61 1DL