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Br and Company car tax query

Hi all - I've spent a few days avidly reading all your experiences and have come to the conclusion after taking the online test from CCCS, that BR may be the way to go for me.

I have unsecured debts of around £43,000, rent a house and have a young family, so OH is not working due to looking after youngest child but brings in a little from p/t work & child tax credits.

I'm not in arrears with any of my creditors but I can't keep going - getting to the point where I'm robbing Peter to pay Paul and we just have no money left to make any headway in paying the debts off.

A couple of queries I can't seem to find the answer to: I have a company car and fuel card and because of that I already have a negative tax code - how would this work in BR?

I also own a car which the OH drives (it's in my name as I have full NCD insurance and it worked out cheaper that way) worth about £3500. Would I be better off selling that now and getting something cheaper in her name or just transferring the car to her? I suspect from what I've read that this might be a problem. She uses the car for school run and p/t work and as I work 6 days a week, this would severely restrict her.

Last question (for now!): One of my creditors is Co-Op Bank credit card - would this have an adverse effect on opening a Co-Op account post BR?

Thanks in advance.

Comments

  • k2nga
    k2nga Posts: 1,375 Forumite
    Part of the Furniture Combo Breaker
    Hi Lotuslad,

    I have to admit i dont have all answers to your questions although someone will be along soon who will have.

    The car one is a tuff question and i guess would be down to what your OR thought as they would have to i guess decide if your wife has a need for the car going forward to take the kids to school. The other problem as i see it is the car is worth over £3500 so they may be interested to be honest but like i say someone else may know more than me. I dont think selling it now will help as the OR may think that is underhanded and decide to stick a BRO on you.

    As for Co-op they appear to have recently changed there policy on this and have been turning away ex customers as what seems like a punishment but i would still say to you to try as itis by far the best account for BR's out there but if not you can always try barclays.
    :cheesy: K2nga :cheesy:

    BSC Member 176
    BR 23/06/08
    ED 22/01/09
    Credit file BR fall off date: 24/06/14 :beer:
  • JCS1
    JCS1 Posts: 5,331 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    I'm guessing you have a K Tax Code? It would work the same as any other tax code, the tax you would normally pay to HMRC would go to OR.
  • Thanks for the replies guys - yes I do have a K Tax Code.

    Just had another question pop up - part of my job is FSA regulated and I am FSA accredited for this - I take it BR & FSA are incompatible? If so, I'll need to inform my employer - something I wasn't that keen on doing.

    Thanks in advance
  • Waspeze
    Waspeze Posts: 2,479 Forumite
    Part of the Furniture Combo Breaker
    Don't know i'm afraid but could you ask the question anonymously just so you know where you stand?
    :hello:
    Save a little money each month and at the end of the year you’ll be surprised at how little you have.
    An eye for an eye only ends up making the whole world blind
  • Hi & welcome.

    FSA could be an issue...much depends on the extent of FSA regulated work you do...are you a seller/customer facing/advisory capacity ?

    On the private car issue...you are more likely to realise a better sale price than the OR will at auction & do you need funds for your BR petition (£495)? ...if so may be worth selling the car for a cheaper vehicle & saving the realised funds...that I `m sure would be fully understood by the OR.....esp as at this current moment BR is not a foregone conclusion for you.

    Finally are all the debts in your name? If not your OH will be liable for any remaining joint liabilities.

    HTH

    Angex
  • Just a thought....if you do go BR & the OR does not allow the car then potentially your OH would be able to `buy` the car back....ie make an offer to the OR .
  • Some good points Angel - It isn't a foregone conclusion, but I think it's heading that way. I'm customer facing sales and don't get too involved in giving advice, although I'm qualified to do so.

    All debts are in my name and are credit cards, loan and overdraft - OH has a credit card but no joint liabilities apart from rent, council tax etc. which are all up to date.

    Selling the car to realise funds sounds like the best plan as I have no surplus for BR fees etc.

    Thanks for your help!
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