[[GQC] Tim]

Silly as it might seem, I can't seem to think of the answer.

My wife runs her own house keeping business. If I give her a certain amount of money a month for petrol  in her car (or for whatever cleaning supplies), can she claim for it at the end of the year, even though she didn't pay for the petrol herself? (I wouldn't claim for it obviously) 

[darren clarke]

yea, all she has got to say is she put it in and get a receipt

[[GQC] Tim]

yea, all she has got to say is she put it in and get a receipt

Is that completely honest though?

[Spruce]

yea, all she has got to say is she put it in and get a receipt

Is that completely honest though?

Hi Tim,

If she is using the car for business, then she can claim the use of her car against tax. If she pays for fuel or anything else with the actual money she gets from her house keeping business, or money you give her, or from her house keeping allowance, does it matter? If you were claiming it then thats different, that wouldn't be honest.
If you inherited money from an deceased estate and you spent it on WFP equipment, you would still be entitled to  claim the equipment you bought as an expense.

I personally would have no problem with your description, my conscience would be clear as far as the taxman is concerned.

Spruce

[Smudger]

The only thing i can see a problem with is its a car, not a commercial vehicle.

so i think you will also need to provide/do a milage log showing what was business and what was personal.

darran

[Sunshine/Cleaning]

I agree with smudger, get her to keep a log of the actual miles she uses it for work and she can claim that as her expenses. As long as YOU dont claim for it then there is no problem.

[easycleaner]

I got stuffed by the tax man over vans and mileage.
The tax man has a scale which is allowed without any questions.
But you must speak to an accountant, not a 'book keeper' they are miles apart!!!!
Mart

[darren clarke]

this is why a lot of companies are getting trackers so they know what miles are getting done and when,

[[GQC] Tim]

Okay that makes sense, thanks guys (Spruce)

Mileage would be very difficult to do since it's part family car as well. I thought the 60/40 rule or similar ratio can still be used? It was the case on the last tax return I believe.

[Smudger]

because it's used for personal/family use is the exact reason why you have to keep a log, otherwise you will be claiming petrol for business that in reality was also used to transport the kids to/from school - that is not a business expense.

(ex. £20 petrol -  3 miles on business and 57 going to/from school - cinama - shopping - etc you can not claim £20 of petrol )

if you log miles and use then you know exactly what it's costing your business. and stay on the right side of the tax man

Darran

[NJWindowCleaning]

If your other half has her own cleaning business wouldnt any allowances be taxable too??

But she would be able to claim the fuel and surpplies but from your own tax you could put that in as gift allowance.

 

[Sunshine/Cleaning]

Okay that makes sense, thanks guys (Spruce)

Mileage would be very difficult to do since it's part family car as well. I thought the 60/40 rule or similar ratio can still be used? It was the case on the last tax return I believe.

No. When she gets in the car to go to work log the miles, when she finishes, log the miles. Easy!

[[GQC] Tim]

Did a bit of research, and as far as I know the following can still be used :

You can either claim 40p per business mile or apportion the use of the car between business and personal (e.g. 60/40 or 50/50) and claim the business percentage of all costs for use of the car.

So what I will do is I will check out the mileage percentage and use that in future.

[Sunshine/Cleaning]

You will need to keep a log anyway to work out YOUR percentage.