Is my car safe?

kittykat100

Hi, I am unfortunatley going to go bankrupt in March when I have saved the money to do so..

I am full time employed and also have a little taxi business which I do at weekends and early mornings. I have a company car for my full time job and I own outright my car which I use as a taxi. Will they let me keep my car to carry on doing taxi work or will they make me give up the taxi work, get rid of my car and leave me with the company car...? I hope someone understands this! Any help gratefully recieved..

Kittyx

Addicted2Chocolate

Can you not use the co car for taxiing? If OR agrees you have grounds for an exempt motor vehicle, on basis it is necessary for self-employment, then
Will depend on how much your car is worth. If it is worth over about £3,000 the OR may consider instructing agents to sell it and give you £2,000 to buy a reasonable replacement. Figures quoted are not set in stone and may vary by area.

JCS1

Highly unlikely to be able to use company car for taxi business, most fleet insurance policies have saying can only be used ABC Ltd company use, personal and domestic. Using it as a taxi service would therefore not be allowed by the owner of the vehicle.

kittykat100

Definatley not allowed to use company car! besides the fact my company will frown upon me with doing another job.

The car is only worth around £2500 because of high mileage. It has to be properly insured and licensed by the council. I am hoping the OR will understand it is a way of increasing income.

peachyprice

One factor the OR may take into consideration is how much money this second job makes compared to how much it costs to keep the car running.

Addicted2Chocolate

Is it def in your interest to carry on taxi-ing as well as full time job? Have you compared what IPA you would have to pay, if any, with just your full time job, compared to what IPA may be sought with the extra taxiing income? If the taxiing income means you have a surplus of £100 or more each month, you know the OR will seek an IPA of between 50% and 70% of the surplus. So you could be doing a lot of extra work for OR to take half or more of it. I would not expect any bankrupt to do a full time and part time job.
However, if even with the extra taxi-ing income, you will still struggle to meet your essential outgoings, no IPA would be sought.