John Messore and Peter Moroz consider the potential pitfalls of leasing company cars to employees, as demonstrated by the case of Smallman & Sons
On 24 August 2021, the First-Tier Tribunal released the decision in Smallman & Sons Ltd v HMRC  UKFTT 300 (TC) (see bit.ly/ 3C4PvBH). This is one of a long line of tax cases on company cars and follows on from recent cases such as Apollo Fuels v HMRC  EWCA Civ 157 and Harrison Solway Logistics Ltd v HMRC  UKFTT 72.
The basic facts in these cases are very similar. Instead of employees leasing their own personal cars directly, those cars were leased by the company which onward leased them or recharged them to drivers at the same amount paid to the leasing company.