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H&W - vans and cars, his and hers!!!

H&W - vans and cars, his and hers!!!

Wife is [sole trader] employer with two shops.

Husband works as employee [admin, etc]. Husband works from home office [no room at either shop for office].

Husband has a co car and a co van [pays BIK on car, no personal use on van so no BIK].

Husband uses van for travel to both work shops – still no BIK as it’s not classed as personal.

Wife has a car….claims business use on a % of total costs basis. [Home to work NOT claimed as business].

Q1 - Husband gives wife a lift to work in van….what now???

Q2 – Can husband use wife’s car for business mileage [starting from home], thereby increasing the business use %, or would he have to go to a shop to pick up the car, or disallow the first 4 miles [distance to largest shop] of any journey??


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02nd Dec 2012 13:55

The wife's car

Since the husband seems to be able to use the wife's car, is it not available for his private use?

If it's available for the husband's private use, irrespective of whether he actually makes any private use of it, then (since it doesn't satisfy the definition of a pool car) it will give rise to another car benefit.

Driving the wife to work in the van is private use, but provided it's no more than incidental to his business use, there won't be a van benefit.

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02nd Dec 2012 19:06

quote: "Since the husband

quote: "Since the husband seems to be able to use the wife's car, is it not available for his private use?"

So every spouse should be paying a BIK on their partners business car???


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02nd Dec 2012 19:29

I'm glad you asked!

If they're an employee who earns at least £8,500 (including benefits) and the car is available for their private use, by reason of their employment. Then yes!

The availability wouldn't be by reason of their employment as a general rule in this situation, but once you start getting him to use it for business, then the availability for private use by reason of the employment surely follows?

Aren't you suggesting disallowing the first four miles, because you're concerned that it's private use?  Disallowing it won't make it any more or any less private use.

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03rd Dec 2012 11:08

So if H works for W and H uses W's car for any business mileage there is a full BIK on H..........even though H is already paying full BIK on a separate company car??


Seems mental to me [non-accountant]...but then again we are talking tax here.

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03rd Dec 2012 11:17

Well you can always...

... prohibit his private use of the wife's car and ensure that, as a matter of fact, there isn't any private use of that car.

The concern I'm expressing is that if you try and squeeze every last drop of tax benefit out of the arrangements, then you might end up shooting yourself in the foot.

Not sure why hubby isn't a partner, but felt sure there was a reason for it.

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