Question about advertising on car

ANGELFLOWER

I have been offered the opportunity to earn some extra money by advertising on my car which I am interested in. However I have had a thought, where do I stand if the car is registered in my husbands name and declaring tax on this income? My husband works full time so he would need to pay tax on this income, whereas I am below the threshold and would not. I would be entering into the contract but as the car is registered in my husbands name how would the tax office see this, would they be happy or see it as tax evasion? I was going to go ahead but this crossed my mind as being a problem. Any advice would be gratefully received.

Edit: Should mention I do drive this car.

eddddy

It's the person who is receiving the income that is important. If you sign the contract, and the payments are made to you, it will be classed as your income - not your husband's. Even if it's your husband that drives and/or owns the car.

(However, if you in turn paid your husband for advertising on his car, he would then have taxable income. But that's not the case here.)

If you are really worried about this, you could draw up a written agreement with your husband stating that he gives you permission to place advertising on his car free of charge. You could show this to the tax man if there was any suggestion that your husband was receiving income. (But I really don't think this would ever come up.)

I guess the only other question is whether the company paying you for advertising has a condition that you must be the car owner. But that's an issue between you and the advertiser - not the tax office.

TwistedPsycho

I would also raise a question as to whether your insurance company would be happy with this as well.

If you insure your car as Social, Domestic, Pleasure & Commuting; would advertising on your car then make it into a business issue, for example; who would pay for any damage to the advertising as a result of an accident that you are deemed at fault for?

NeverInDebt

Good point it could possible void your insurance we all know insurance companies look at ways of trying to worm there way out of paying

TwistedPsycho wrote: »

I would also raise a question as to whether your insurance company would be happy with this as well.

If you insure your car as Social, Domestic, Pleasure & Commuting; would advertising on your car then make it into a business issue, for example; who would pay for any damage to the advertising as a result of an accident that you are deemed at fault for?

eddddy

Great point TwistedPsycho and NeverInDebt.

I just looked at a few car policy documents online. The insurance companies regard advertising/signwriting as a modification to the car - so as with all modifications, the insurance company needs to be informed. It seems that some insurance companies will allow it and others won't.

Of those that do, I guess they will either exclude the advertising from loss/damage cover, or they will need to know the cost of replacing it (and may apply limits and/or adjust premiums).

It's an interesting question whether paid advertising automatically makes driving the car 'business use'. The policy docs don't clarify this.

As others have said, I think it makes sense to discuss it with your insurance company before signing the contract.

Owain_Moneysaver

If you are using the car to carry advertising for others it may be classed as 'hire or reward' which is a more onerous insurance responsibility than simple business use.

And once the car is classed as a business vehicle for tax purposes you may have to pay tax on personal use of a business vehicle.

slightlycool

How much would you get to advertise on car?

Gerardo01

[FONT=&quot]This shows us that automotive advertising has become very important, people are trying all possible ways to market their automobile products. A good and well designed marketing strategy really makes a lot of difference in the sales of the product. I think you can go ahead and earn some good money too.


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