Sole trader car on joint names

roplabda

Hello!

I am jsut about becoming a sole trader (self employed). I am aware that certain expenses and capital items may be included in the tax calculation incurred pre-trading.

I have a car which I have bought originally for private use about a year ago. Given that at that time it wasn't wholly, exclusively and necessarily for the purpose of the trade, I assume I can't just include it in the accounts at MV as if purchased on first day of trade.

I would transfer it to the business at MV on the first day. However, on the car registration document it is both on my name and may partner's name (i.e. Mr XY and Mrs XY). Although I will use it most of the time (will claim business mileage proportion, that's understood) she might use it for small private trips.

From the point that I would claim it to be 'owned' by the business, ie myself as a sole trader, does it matter that it is also on my partner's name or we need to get it changed to only my name - which I would dislike as it would add an extra owner on the V5? Does this distort trade ownership or has any consequences such as only 'my proportion of the ownership' of the car costs can be claimed?

I hope someone can give me advice on this.

Thanks a lot for any help!