Do I have to pay company car tax on a rental car from Alamo?
Hi,
I have a question and needs an answer quickly for the meeting shortly. Let’s say I get a rental car from Alamo or any other rental car companies at the airport. I rent the car monthly, let’s say GBP600 plus VAT for example. I will get direct reimbursement from the company. Or I can use the company credit card to pay for this directly. Do I have to pay company car tax on it? for 4 months rental? or for 12 months rental? How about fuel benefit tax? Over 95% of the mileage are for business use. However, I understand that even for the commute between office and home, it’s still considered as private mileage.
And if I do have to pay company car tax, how do they calculate the tax? Since I’ll be switching to different rental cars every few months, how are they going to calculate the value of the cars for the company car tax?
thanks a lot!!
the car is a hire car and unlike most company cars which are leased. when you lease a car through your company the tax office have to be informed that you are doing so so you have to pay company tax. THERE IS NO SUCH obligation to do so with hire cars so the tax office will never know so therefore you will not be liable for tax. You may be better off all round
