Expenses. can i do this?

billycasper_2

Hello everyone.
My wife is self employed and does her own books.
If i do her books can i charge her for the service ?
also
our car is in my name but my wife uses it to get to work more than i do.
Can i charge her for the use of the car?
If i give her an invoice and receipts and declare the extra income on my tax bill then we would be saving on the amount of tax paid in the year
but can i charge my wife for the use of my car:eek:

billycasper_2

hi there,
If my wife had the car in her name she would be able to claim back expenses on that car (proportionate to the business use) can she (or her business) claim back for car rental if it was for business use.

billycasper_2

Sorry yes she needs a car to get to clients houses. If i charge her a rental fee per month, is this not a business expense.
she doesn't earn a great deal so me doing the books and charging for it keeps the money within the family if you know what i mean.

jimmo

Why doesn't she claim the usual 40ppm?

Ownership of the car is really not an issue. Take a look at the final paragraph in this link.
http://www.hmrc.gov.uk/manuals/bimmanual/BIM47701.htm

billycasper_2

She claims for petrol @ 40p a business mile. Are you saying she cant do this and claim for the cost of leasing the car ?

Hoddie_2

billycasper wrote: »

She claims for petrol @ 40p a business mile. Are you saying she cant do this and claim for the cost of leasing the car ?

Yes. Can't do both, and if you've elected to claim 40p per mile during previous years for the same vehicle, you cannot now change your mind.

billycasper_2

ok so now i'm confused.
the tax office told my wife she could claim the petrol for the business but not any other car expenses because the car is in my name. if i charge her for the use of the car, she still has to put petrol in it why cant she claim that back as a business expense.

Hoddie_2

As stated above, ownership of the car doesn't really come into it. The per mile rate is instead of claiming any/all other costs associated with using that vehicle for the business, and includes depreciation, insurance, servicing, MOT, fuel, etc.

dmg24

If you charge her for the use of the car, will you be paying tax on the income that you receive from her?!

billycasper_2

yes.. everything above board. proper payments etc..
but it seems that if she cant claim the petrol then the best option would be to transfer the car to her name and then claim a proportion of the maintenance

Hoddie_2

Petrol is included in the per mile rate.