The Upper Tribunal has upheld the decision of the First Tier Tribunal (FTT) in the GR Solutions case that a car which was owned jointly by an employee and his employer was made available to that employee and so gave rise to a car and fuel benefit on which Class 1A NICs were payable by the employer.

In this case, GR Solutions Limited v R & C Commissioners [2013] UKUT 0278 (TCC), Mr Hall, a director and employee of GR Solutions Ltd (the appellant), purchased a car and some time later transferred a 90% share in that car to the appellant.

Mr Hall continued to have use of the car for business and non-business purposes and made a 10% contribution towards the running costs and fuel costs of the car. No car or fuel benefit charge was reported by the appellant to HMRC for the period of co-ownership.

The Upper Tribunal said it was immaterial how the co-ownership was brought about. The expression 'made available' should be applied to the point in time at which the vehicle is used and not the point in time at which it is purchased or an interest in it is transferred.

'This case confirms that co-ownership of a car will not prevent that car from being made available to the employee for the purposes of the car benefit rules, no matter how that co-ownership is brought about,' says CCH tax specialist, Meg Wilson.

The judgment is available HERE