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Post Info TOPIC: Best way to treat a car bought on finance by wife of Director
Leger


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Best way to treat a car bought on finance by wife of Director
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Clients wife has bought a car on finance for use in Ltd Company.  Ltd Company will make payments to wife who will in turn pay finance company.

Cost of car is 9k +£1500 3 years warranty.  Finance is 7500 but presumably there will be interest on top.  Other 3k from joint savings I think.

Thoughts are introducing loan + interest payments and presumably she will be taxed on the interest.

Car is private hire vehicle if that makes any difference.



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John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
FoxAccountancyServices


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What would the mileage charge for a private hire be? Can the client give you a rough annual figure?

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Leger


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Hi Michelle

Approx 10-12k mileage , so £4500 to £5000 

For this car fuel bill will be around £2500  Insurance £600 Maintenance £1000



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John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
FoxAccountancyServices


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Wow that's low for a taxi?

If the HP is her name, the car will be in her name too?? And so is not a business asset?? So no CA's available and would only be 8% or 18% anyway?

Costs per year are £4100 plus some interest...

Mileage is £4500-5000 but keeps them out of any car/fuel benefit issues.


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Leger


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I looked up the last two vehicles he had and the hackney had done 20k the ph 13k but the hackney had a driver on it.

No driver now and he uses ph for schools and hackney for rank work.

Any reason why the car can't be introduced into the business, I assume the reg keeper can be the company?

 

Alternative is to rent the vehicle to the company which would work if the wife had some spare personal allowance? Otherwise  it looks like the mileage allowance will be better option?



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John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
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