Claiming cost of car finance against Income Tax?

Marsupial

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Skippy junior has a public service job. His missus is a driving instructor. She is currently finalising her tax return for last year.

During 2022 she replaced her dual-control car (an essential tool of her trade) for a new one. Because her income was considered too low, her husband had to take out a car loan for her (he already has his own car). Her accountant has recently advised her that she may not be able to claim tax relief on the car finance as the loan isn't in her name. She is making the loan repayments from her income, the new car is in her name and her spouse is deriving absolutely no benefit from the loan that he took out. She is now worried about claiming this legitimate business expense.

In the circumstances, is there any possibility that Revenue wouldn't allow her to claim the costs of the car finance? Thanks in anticipation.
 
Could you clarify:
Is she operating as a sole trader, or via a limited company?
Is the car financed by a standard loan, or HP / lease agreement?
 
Could you clarify:
Is she operating as a sole trader, or via a limited company?
Is the car financed by a standard loan, or HP / lease agreement?

She is a sole trader and her car is financed by a PCP.

(Her husband also has a separate PCP arrangement for his own car.)
 
Last edited:
I suspect the

Are they her accountant or their auditor? Either way, it's your wife's decision to make, not theirs.

They're both. And it's not my wife, it's my daughter in law.

That's why I'm asking for others' opinions; if it was me or the missus then we'd just have gone ahead and claimed.
 
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