Using spouse's company car for work
Discussion
I work as a contractor through my own Ltd company. I am planning to get an EV and the most tax-efficient way is as a company car, paying the low BIK tax for personal use of the car. My partner needs to use a car for work occasionally, we don't want or need more than one car, so is she able to use my company car for her work?
Obviously she would be insured for this, and as I own the company in question, the company has no problem with it.
Are there any tax or other reasons why this would not be allowed?
Obviously she would be insured for this, and as I own the company in question, the company has no problem with it.
Are there any tax or other reasons why this would not be allowed?
Insurance should be fine. I will be arranging insurance myself, so I will make sure all named drivers are covered for all classes of use.
My main concern is the tax situation, whether I will be able to claim corporation tax relief if the car is also being used for the benefit of another company.
My main concern is the tax situation, whether I will be able to claim corporation tax relief if the car is also being used for the benefit of another company.
CanAm said:
sospan said:
Check the insurance aspect as well.
+1. Check the insurance aspect very carefully in particular business use by your wife. This would not normally be covered.ethomas said:
Insurance should be fine. I will be arranging insurance myself, so I will make sure all named drivers are covered for all classes of use.
My main concern is the tax situation, whether I will be able to claim corporation tax relief if the car is also being used for the benefit of another company.
Business use is normally that of the policyholder, so make sure that the insurer is aware that it is your wife's business.My main concern is the tax situation, whether I will be able to claim corporation tax relief if the car is also being used for the benefit of another company.
I remember my old company car used to state that a spouse could use it but not for business use (I'm sure commuting was an issue too).
That was with AIG.
My BIL is still at the same place and his wife uses his company car more than him since home working as it comes with a fuel card, she goes to work in it, not sure how it could be proven that she was going to work, it doesn't seem to bother him and is on too much money to risk getting the sack for something silly like that (£80k plus base, F Pace company car).
That was with AIG.
My BIL is still at the same place and his wife uses his company car more than him since home working as it comes with a fuel card, she goes to work in it, not sure how it could be proven that she was going to work, it doesn't seem to bother him and is on too much money to risk getting the sack for something silly like that (£80k plus base, F Pace company car).
ethomas said:
Insurance should be fine. I will be arranging insurance myself, so I will make sure all named drivers are covered for all classes of use.
My main concern is the tax situation, whether I will be able to claim corporation tax relief if the car is also being used for the benefit of another company.
I was looking to get a 2nd company car under my name in the company for my partner to use. She is not employed by the company. My main concern is the tax situation, whether I will be able to claim corporation tax relief if the car is also being used for the benefit of another company.
My accountant said this was absolutely fine, you can have as many company cars as you like under your name, as long as you pay the relevant BIK (and the company are OK with it!). The fact that I would not be driving it did not matter.
ethomas said:
I work as a contractor through my own Ltd company. I am planning to get an EV and the most tax-efficient way is as a company car, paying the low BIK tax for personal use of the car. My partner needs to use a car for work occasionally, we don't want or need more than one car, so is she able to use my company car for her work?
Obviously she would be insured for this, and as I own the company in question, the company has no problem with it.
Are there any tax or other reasons why this would not be allowed?
When you say “your wife has to use it for work” do you mean commuting or to do work related work?Obviously she would be insured for this, and as I own the company in question, the company has no problem with it.
Are there any tax or other reasons why this would not be allowed?
If she had no car what would happen?
My last few policies have been absolutely fine insuring both me and my wife for business use.
On all the questionairres I’ve filled in, it asks separately for both the policy holder and spouse (& any named drivers) your employment status, Job title / sector, and if business use is required.
Top of my head I’m with ESure now, and last year was Admiral. Extra premium was absolutely minimal, about £20 / year.
Admiral asked how many miles were split between business / personal. No separation required with ESure.
On all the questionairres I’ve filled in, it asks separately for both the policy holder and spouse (& any named drivers) your employment status, Job title / sector, and if business use is required.
Top of my head I’m with ESure now, and last year was Admiral. Extra premium was absolutely minimal, about £20 / year.
Admiral asked how many miles were split between business / personal. No separation required with ESure.
Tomanybikes said:
When you say “your wife has to use it for work” do you mean commuting or to do work related work?
If she had no car what would happen?
I mean work related work (travel to sites which are not her regular office). If there was no car then she would have to get one. We currently have a shared car, we are planning to replace it with the company car if possible.If she had no car what would happen?
It's many years (decades, bugger) since I had company cars, however I would never have dreamed about using someone else's company asset as a work tool for another business?
Are you sure contractually you're allowed to use your company car, for your good lady to do her business stuff with?
Sounds a bit iffy to me.
Are you sure contractually you're allowed to use your company car, for your good lady to do her business stuff with?
Sounds a bit iffy to me.
ethomas said:
Tomanybikes said:
When you say “your wife has to use it for work” do you mean commuting or to do work related work?
If she had no car what would happen?
I mean work related work (travel to sites which are not her regular office). If there was no car then she would have to get one. We currently have a shared car, we are planning to replace it with the company car if possible.If she had no car what would happen?
dundarach said:
It's many years (decades, bugger) since I had company cars, however I would never have dreamed about using someone else's company asset as a work tool for another business?
Are you sure contractually you're allowed to use your company car, for your good lady to do her business stuff with?
Sounds a bit iffy to me.
It's my company, I can call a board meeting with myself and decide it's all fine.Are you sure contractually you're allowed to use your company car, for your good lady to do her business stuff with?
Sounds a bit iffy to me.
Tomanybikes said:
So she gets a mileage allowance and it stipulates in her contract that she must have a car?
She must have use of a car. The company doesn't care who owns it, just that she is allowed to use it and has suitable insurance.ethomas said:
dundarach said:
It's many years (decades, bugger) since I had company cars, however I would never have dreamed about using someone else's company asset as a work tool for another business?
Are you sure contractually you're allowed to use your company car, for your good lady to do her business stuff with?
Sounds a bit iffy to me.
It's my company, I can call a board meeting with myself and decide it's all fine.Are you sure contractually you're allowed to use your company car, for your good lady to do her business stuff with?
Sounds a bit iffy to me.
Tomanybikes said:
So she gets a mileage allowance and it stipulates in her contract that she must have a car?
She must have use of a car. The company doesn't care who owns it, just that she is allowed to use it and has suitable insurance.In which case, press onwards Sir
Ham_and_Jam said:
My last few policies have been absolutely fine insuring both me and my wife for business use.
On all the questionairres I’ve filled in, it asks separately for both the policy holder and spouse (& any named drivers) your employment status, Job title / sector, and if business use is required.
Top of my head I’m with ESure now, and last year was Admiral. Extra premium was absolutely minimal, about £20 / year.
Admiral asked how many miles were split between business / personal. No separation required with ESure.
Was it a company car? If it was a personal car insured personally, it's not really relevant to this discussion. On all the questionairres I’ve filled in, it asks separately for both the policy holder and spouse (& any named drivers) your employment status, Job title / sector, and if business use is required.
Top of my head I’m with ESure now, and last year was Admiral. Extra premium was absolutely minimal, about £20 / year.
Admiral asked how many miles were split between business / personal. No separation required with ESure.
EU_Foreigner said:
That is what the BIK is for though, so no problems at all
I'm no expert but I would have thought from a tax perspective this was right.You pay BIK because you're getting the benefit of personal use rather than it being business only. That's all the tax man cares about.
Whats allowed as part of that personal use is a company policy/insurance issue, not a tax issue.
For the OP thats really only an insurance issue.
Edited by 98elise on Saturday 5th March 10:20
OP this is a great idea that I have also considered. Obvs you would lease the car to benefit from reclaiming VAT on the payments. Trouble is you need a relatively short lease (24 months) as we don't know what the BIK is going to be in the future. It's been a while since I looked at the figures though.
carl_w said:
OP this is a great idea that I have also considered. Obvs you would lease the car to benefit from reclaiming VAT on the payments. Trouble is you need a relatively short lease (24 months) as we don't know what the BIK is going to be in the future. It's been a while since I looked at the figures though.
You can only claim back 50% of VAT, in case you were not aware.Gassing Station | Speed, Plod & the Law | Top of Page | What's New | My Stuff