VIT54800 | Motoring expenses: availability of cars for private use

The test of whether a car is available for private use is to examine the intention of the business when the car was bought. For a definition of exclusive business use see VIT52700.

This means HMRC is interested in the question of whether a car has the potential for private use rather than if such use is likely. This is a significant test and HMRC will apply it strictly. The lead case on the test of availability is Upton (CM) (t/a Fagomatic) (see VIT64690).

It is likely that a car kept at the home premises of someone who runs a business will be available for private use no matter how many other cars that person has. HMRC will normally record comprehensive details of use.

If a business decides to appeal an HMRC decision about private use of a car the following information has been found to be useful:

• who has access to the car and when;

• what is there to stop the person(s) who has access to the car from using it to make private journeys during or outside normal working hours;

• for what types of business journey is the car used;

• what is the likelihood that the car will never be used for mixed business and private journeys;

• what vehicles are used to perform private journeys;

• what is the availability of these vehicles;

• what happens when these vehicles are unavailable, for example when they are being serviced or used by other people;

• whether the user keeps a log of journeys;

• whether the car is insured for private use; and

• whether the vehicle has any peculiar feature or adaptations for a particular kind of business use.