Is a pool car a taxable benefit in kind for employees?

Full answer

A pool car has zero benefit in kind (no P11D or Class 1A NI) if it meets all HMRC pool car criteria: the car is made available to and actually used by multiple employees; it is not normally kept overnight at an employee's home; and any private use is incidental to business use (e.g., stopping at a petrol station on the way home). If a single employee uses a car exclusively and takes it home, HMRC will likely treat it as a company car benefit even if labelled a pool car. The car benefit charge for a standard company car is based on the car's list price multiplied by the relevant BiK percentage based on CO2 emissions (e.g., 2% for a zero-emission EV in 2026/27, rising to 4% in 2027/28).