Wife's cy car?

[XLMonkey]

Well, the difference is that my wife is having money deducted from her payslip (and therefore from OUR income ) every month in order to have this car. You must have heard of credit sale agreements between a leasing cy and an individual, most of the cy car schemes work that way. The cy car is not for free while the post office van is (until the postman calls the police of course...)

If the credit agreement is directly between your fiancee and the leasing company, then it's not (strictly) a company car. All your fiancee's company does is organise the option for her to use the lease agreement to get one. as long as she's free to take the money and use it elsewhere to, e.g., buy and run her own car, that is....

Hector doesn't give a monkey's whether or not it's your car that you drive, as long as you are entitled to drive it, and genuinely do the miles that you claim. Therefore, if you are doing the miles, you can claim the rate.

Your real problem is about your personal tax liabilities, and the risk of defrauding your fiancee's company. There are two scenarios:

1. Your fiancee's company doesn't make any separate contribution to the lease (by which I mean, a contribution that is specifically tied to her taking up a lease, and not available, even at a reduced level, as cash). In which case, you would need to arrange extra insurance for business use on the car (remember, you are not commuting, as you are not employed by your client. Therefore, even if you have commuting cover through your fiancee's insurance, you're still not covered to go to the client). That's it, you're done (though your fiancee probably thinks that she's entitled to a slice of the pie...)

2. Your fiancee's company does make a contribution to the lease (as above, a payment tied to the lease, that she can't even partially take as cash), then you're truly ****ed, as you would be guilty of fraud by using an asset they provided (even if they don't fully own it) for your benefit without express permission. In addition, Hector would probably take the view that you were obtaining a benefit in kind from your fiancee's company and tax you both at the full rate.

honestly, it sounds like a crap idea..... risk far too great, reward far too small.