Help with income tax.

atro1

We brought a new car last year under the scrappage scheme as it was my car to be scrapped, the new one had to go in my name, although it was for the wife.
How can I [if we can] change the car to my wife's name so she can claim income tax relief on it. I still have my own car, and the new car is for my wifes job as a carer.Doing about 600 miles a month.
I apologize is this is in the wrong thread.

alwaysonthego_2

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TM1976

She can claim tax relief on the business miles she does - ie out an about visiting patients at 40p a mile for the first 10,000 miles and 25p a mile thereafter, less whatever her employer pays her for this.

In tax terms it's likely to be 20% of this amount she gets back.

The car doesn't have to be in her name but she needs to keep a record of her mileage.

atro1

Thanks for your reply.
What about the interest on the loan [HP] to buy the car.

fengirl_2

She can include the interest on the loan, but only if she is including all the running costs of the car in her accounts. If she is using the 40p/25p method, this has to cover everything.

POPPYOSCAR

fengirl wrote: »

She can include the interest on the loan, but only if she is including all the running costs of the car in her accounts. If she is using the 40p/25p method, this has to cover everything.

Even though the loan is not in her name?

BoGoF

Is she employed or self employed? If employed then all she can claim is the 40/25ppm and nothing else.

fengirl_2

Where does it say loan was in husband's name?

POPPYOSCAR

fengirl wrote: »

Where does it say loan was in husband's name?

In the OPs post he says the car was bought in his name and wants to transfer it to his wifes name.he has also thanked me for my post so I am assuming that I am correct in thinking that the loan is in his name.

TM1976

The finance doesn't necessarily have to be in the wife's name if she is using the car for her business.

I'm pretty sure she is employed not self employed though, in which case she can't claim this.

heretolearn_2

You say your wife's 'job' so I take it she is an employee. She can't claim anything other than mileage.