If you make a “pool car” available to one or more employees, subject to conditions, it does not count as a taxable benefit in kind. If you are at all unsure whether the tricky conditions are met you can write to HMRC for confirmation.
No private use
A company car used by one or more employees or drectors is a taxable benefit for each unless the car is a pool car. A car is only a pool car if there is no private use or the only private use is incidental to business use.
conditions
The conditions that have to be met are: (1) it must be available to and actually used by more than one employee; (2) it must not be used by one employee to the exclusion of others; (3) it should not normally be kept overnight at an employee’s home; and (4) it must not be used for private journeys except as a small part of a business journey. Given that the rules provide a total exemption from any tax charge, it’s not surprising that HMRC applies them very strictly.
Confirmation
If you want to have some certainty over the tax treatment, before providing making a pool car available to an employee or director send our Letter to HMRC Regarding Pool Car Status to HMRC.