Can my company buy my car?

Discussion in 'General Business Forum' started by D2D1, Nov 14, 2011.

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  1. D2D1

    D2D1 UKBF Newcomer Free Member

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    As I need the money, I would like to sell my car to my company for re-sale only. I would not be using the car after selling it to the company, it would simply be sold on by the business. Is this allowable?

    Any advice is appreciated.
     
    Posted: Nov 14, 2011 By: D2D1 Member since: Sep 28, 2009
    #1
  2. InBetweener

    InBetweener UKBF Newcomer Free Member

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    I am sure it is legal, but do you SERIOUSLY want to sell your car to your salary payer?? What if they have issues with the car or issues selling it. It will only come back to you and bite you on your behind.

    Its like selling something to a friend or family member, not the best thing to do. I would sell it privately to an unknown person. The last thing you want is to have issues with your employer over a used car.

    Avoid!
     
    Posted: Nov 14, 2011 By: InBetweener Member since: Nov 3, 2011
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  3. D2D1

    D2D1 UKBF Newcomer Free Member

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    Oh, I should clarify, I own the company. It's really just to get the money quickly rather than waiting for it to be sold.
     
    Last edited: Nov 14, 2011
    Posted: Nov 14, 2011 By: D2D1 Member since: Sep 28, 2009
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  4. Guest

    0 0
    Why can't you take money out as Director's loan?
     
    Posted: Nov 15, 2011 By: Member since: Jan 1, 1970
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  5. InBetweener

    InBetweener UKBF Newcomer Free Member

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    It would then be considered as an asset, which may cause some issues with your accounts and auditing

    Sounds like your robbing peter to pay paul (in the non illegal sense). Keep it simple, keep it and sell it privately yourself.
     
    Posted: Nov 23, 2011 By: InBetweener Member since: Nov 3, 2011
    #5
  6. CompanyRecovery

    CompanyRecovery UKBF Newcomer Free Member

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    If it is a Ltd company and you just take money from it as and when, you can get yourself in some hot water, especially if there is an insolvency. If you have an overdrawn director's loan account and your company goes into liquidation, the liquidator will pursue you personally for the money you have taken out if it has not been taken as a salary or a dividend.
     
    Posted: Nov 24, 2011 By: CompanyRecovery Member since: Nov 24, 2011
    #6
  7. 90DC

    90DC UKBF Newcomer Free Member

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    I know somebody who does something quite similar to this but I have never cared to understand it.

    He will sell an asset onto his company for it's true value, say £2500, therefore I think he doesn't pay tax on the £2500 balance transfer as all he has done is sold a personal asset, I think the company will claim tax back or something and his company will sell the asset back to him within a couple of months.

    I'd love to know why he does this.
     
    Posted: Nov 24, 2011 By: 90DC Member since: Jun 6, 2010
    #7
  8. D2D1

    D2D1 UKBF Newcomer Free Member

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    There is a possibility that the car will not sell for a few months, therefore will devalue somewhat, and it's better for my business to make the loss (tax deductible) than for me take make a loss.
     
    Last edited: Nov 30, 2011
    Posted: Nov 30, 2011 By: D2D1 Member since: Sep 28, 2009
    #8
  9. D2D1

    D2D1 UKBF Newcomer Free Member

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    Could it not be considered as just stock for resale, rather than an asset?
     
    Posted: Nov 30, 2011 By: D2D1 Member since: Sep 28, 2009
    #9
  10. Truemanbrown

    Truemanbrown UKBF Newcomer Free Member

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    Posted: Dec 2, 2011 By: Truemanbrown Member since: Jul 23, 2010
    #10
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