Vehicle used in two businesses

Anne Boleyn

Hi everyone

I apologise in advance if this seems too simplistic. I have just met with a couple (married) who both have their own self employments which are entirely unconnected. They have one car which the wife (who has been s/e for several years) uses in the course of her business and keeps a record of the business mileage. The husband has started s/e wef 06/04/08 and also uses the car. Is it allowable for the husband to also claim vehicle expenses but to use the actual expenses incurred on a % basis. He estimates that he uses the car about a third for business.

I have never come across this scenario before and felt that whilst he would be able to claim something I thought he might also have to go down the mileage route.

I would appreciate any and all advice offered. Thank you.

DaveP

They can both claim the relevant percentage that each uses it for business purposes.

Of course if they both want to claim 75% then you have a problem!

Anne Boleyn

Hi Dave
Thanks for answering. It's more a case that the wife aleady claims the mileage she's doing and as the husband has just started s/e, he wanted to claim the actual expenses with a 33% business use. Do you know whether they can use both the methods on the one car? If you could direct me to the relevant guidance I would be very grateful.

DaveP

There will be nothing in the legislation that covers your scenario. You therefore have to apply the rules to each business in isolation.

I see no reason why one party can't claim mileage while the other uses the actual method. You will of course have to consider the value of the asset being introduced at commencement of trade by the new business. Perhaps taking into account that only 50% of ownership is effectively being introduced?

Anne Boleyn

Thanks again for taking the time to reply.