Weekly income for renting car. Hire Purchase set up

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  • #31997
    r_rose
    Participant

    Our customer was renting his car to his son-in-law for him to use as a commercial taxi. They set up a Hire Purchase agreement between themselves and the son-in-law paid him £100 per week for 155 Weeks. With the option to purchase the vehicle at the end for £100.
    The weekly £100 was not kept as capital and the customer used it on his home.
    The vehicle remained in my customers name but his son-in-law had to take on all responsibilities i.e. paid the tax, maintenance , MOT etc.
    I think it should be taken into account as a weekly income, but the customer has said it is a hire purchase agreement and not an income.

    #89447
    peterdelamothe
    Keymaster

    In effect your customer has sold his car. The car is disregarded as an asset so I am presuming you are trying to argue that the income from a disregarded capital should be taken into account. I am dubious about that. If the car was sold for 10k what would you do? Take the capital into account. In effect the car has been sold albeit over a longer term.

    You could make a case for income if the claimant did this as an occupation i.e. he bought and rented out cars as a business. But if this was just a one-off, I am dubious.

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