Second Question - Cars...

NigelFoster

I have a low value £400 car which I understand I will be alllowed to keep.

My wife also has a similar value car of which I pay the insurance and tax etc on as she does not work.

I am allowed to include these costs on the I and E form?

alastairq

On the face of it, I would doubt it...would have to come from any surplus you may have. [mine does..I have a small m/bike as well...]

However, consider this.....IF your own car is sub-1500cc, the VED due is around £100 pa....for a larger engined car, it'll be around £180 or so...assuming older cars, not subject to tax-by-emissions.

Therefore, if both cars are in the lower VED bracket, it's possible you might be able to claim expenditure equal to that expected of a larger-engined car?

all of which I didn't tell you, as it's vaguely cheating....and I shall deny all knowledge, etc...or plead senile dementia...

debtinfo

depends on how thorough the examiner is, i used to check the tax band of the car

Captain_Longbeard

This is only from my experience - but I think a number of other factors could influence this. Do you have any children, do you use your car for work (so leaving your wife/kids without transport), how far from the nearest school and or supermarket do you live. You already have said that your wife doesn't work, so this makes her a dependant of you, and so reasonable expenses can and will be allowed.

Depending on those answers, you may be allowed to include it. If however, you can or do use public transport for work, and your schools and shops are near, then the OR may not allow it, and may insist on just the one car.


I don't think it's all clear-cut, and also depends on the OR, and as Alistair says, though, there is always the surplus...

BTW - my car was worth less than 900 (and needed some work on it, and a service - and after costs for them taking it and selling it on I didn't think they would take it, but they did)...

Good luck

fiveyearplan

It isn't just about cost either, if the car, for example is worth relatively little (£400) and does not run they would take it for sure as it is a liability issue.

alastairq

A point missed so far is that.....whilst [for work purposes, or after successful negotiation] the OR may allow a BR to retain a car....if the BR [or family] has a second vehicle [or third!]...then..if the value is very low...[ie bordering on scrap value]...the OR may be able to offer the BR an opportunity to purchase the interest in that [those] vehicles.

This is what happened to me.

So....providing the actual value of other family vehicles is sufficiently low, it is then up to the BR to place bids with the OR, at least equal to what the OR may have gained by claiming the extra vehicles.

The arguments in favour of the BR taking this action, for low value vehicles, is obvious.....it will cost the OR to recover and dispose of said vehicles, therefore the residue will be even lower....and with current OR workloads, no resonable offer would be refused...[I offered scrap values....gratefully accepted!]


So lay some money aside to purchase the interest in your wife's car, if needs be?