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.

[~Craig~]

in other words sh*t upon from a great hight

[malandri]

I suppose i have to check the cy car policy to see if i am allowed to drive her car to my work. I know that she can use the car for driving to work (of course ) and we can both use it for leisure purposes, but not if i can use it for my commute

[boredsenseless]

You'll probably find that her insurance doesn't cover you for commuting to work since the car is for her to commute to work in.

If you do it you'll have to check the insurance and maybe take out your own policy to cover your commuting use.

Also you'll have to deduct the amount your wife gets in employer contribution to the lease from your pence per mile.

Get a cheap car and stop worrying about it

[malvolio]

OK, in that case, it's probably OK if you deduct the purchase price (or lease cost) of the car, depreciation, insurance and servicing from the 40ppm. Her contribution will be for fuel and some of the servicing.

Still think it's wrong on all sorts of levels though... Hell, if you can't afford to do the gig, why did you take the contract?

[Hiram King Of Tyre]

I'm sure it's not legal and if there was an investigation then they would want proof that you had done the mileage in your car. Like most things I guess....OK till you get caught.

I suppose you could buy a replacement speedo , rack up a few miles on it and then say that you had to change it!

[malandri]

Ah, and she (we) pay benefit in kind for petrol as well...

[malandri]

Have you ever thought about running your own comapny and making your own financial arrangements, rather than sponging off someone else's?

Just curious, like... I mean, as an example, you could just as easily nick a Post Office van and use that.

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...)

[malvolio]

Have you ever thought about running your own comapny and making your own financial arrangements, rather than sponging off someone else's?

Just curious, like... I mean, as an example, you could just as easily nick a Post Office van and use that.

[malandri]

Sorry, should have posted this under accounting/legal. I do not know if i can move it there

[malandri]

I have just signed a contract which is quite far away from home. I therefore will have to do around 20.000 miles / year commuting to there, around 90 miles / day back and forth. I was thinking of using my wife's to be ( we are engaged and have bought a house together) company car in order to go to work and she could use her own car as her commute is much smaller. To avoid any confusion, the company she is working for has nothing to do with my LTd, it is her real occupation, even if she is the secretary of my Ltd as well. Obviously, petrol. maintenance, insurance etc are all paid for by her company. Do you think i can still claim the 0.4 and 0.25 pounds per mile expense ? Would Hector be angry with me in case of an investigation? Would he ask if the car i am using is mine or my wife's or a cy car?

Thanks