Extensive directory of 100+ ready-to-use and regularly updated letters, policies and checklists accompanied by a useful commentary which describes how and when to use them.
Banning private use is essential for it to be considered a pool car by the Taxman. A verbal ban may work but it is far more sensible to have a policy written into the employee’s contract. This will also help convince an inspector that you operate a genuine pool car arrangement.
Verbally banning employees from using pool cars for private journeys was good enough for one VAT tribunal; however, we recommend that you’ll be on much safer ground by introducing a Pool Car Policy . Always make your intentions clear from the start of a pool car arrangement by explicitly banning private journeys. This way when buying your next pool car you should be able to claim back the VAT on it.
The policy also makes it clear that each car is not for the exclusive use of one particular person, this is vitally important for establishing its pool car status. The car must be driven only by authorised personnel and you must obtain a copy of their driving licence before you allow them to drive the car. All fuel must be paid for by the company.
There is also a clause relating to damage to the vehicle. By signing the employment contract the employee is agreeing to repay the company should the car be damaged due to the employee’s negligence or wilful neglect. They will also accept responsibility for an excess payment should the car be involved in an accident, regardless of the circumstances.
Together with the journey record, by including this policy in your employee’s contract it should help to convince an inspector that you operate a genuine pool car arrangement.