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Hi there
Potential can of worms here....
One of my clients (since Feb this year) and his wife and joint directors of a Ltd Company set up in November 2010. They are, frankly, very green when it comes to understanding legislation.
They are now (as of April) employees of the company. The problem I have is that they have leased a car which they use for private use and a (tiny) bit of business travel. The car is registered to them at their own address and, I believe, the kease is also in their names at their home address. The lease payments, insurance, repairs and fuel however are all paid for by the company. I am aware (although not au fait) of the complex rules around benefits in kind etc but can't seem to find clarifcation of whether the car has to actually be owned by the company in order to be classed as a 'company car' and thus a legitimate benefit. If its not owned by the company are they still 'allowed' to pay for it in this way, and is there any other way it could be accounted for - e.g. against the directors loan account?? Or should they just not be doing it all?
I'm also aware that I probably need to file a P46 (car) by 5th July to cover the period of their recent employment, although the car was being paid for prior to April in exactly the same way, so speed is now of the essence.
I am keen to drag this company up to scratch for obvious reasons but need some help to unravel this one please!
Thanks in advance
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