Sufficient records – just

The appellant company supplied and fitted industrial doors and security systems. In 2009 HMRC decreed the company should pay Class 1A National Insurance in respect of car and car fuel benefits on two cars.

The company appealed on the basis that the cars were pool cars available to employees for business travel only and met all the conditions in ITEPA 2003 s 167(3).

The cars were parked near the business premises and occasionally taken home overnight by employees when needed first thing in the morning. There were no formal monitoring systems however and there was no legally enforceable ban on private use.

The First-tier Tribunal said that while it was best practice to maintain written records to show that the conditions in s 167 were met it was not a statutory...