Selling a personal vehicle...........

[LuvinF56]

.......... To your company.

I was self employed until last year when I created a LTD company.

I sold over the good will and a van when incorporating, but kept a pickup in my personal name which I had brought partly personal and partly business when self employed.

Would it be possible to sell the vehicle to my ltd company? Is there any resin this would look dodgy to HMRC?
My accountant is sceptical but I'm just looking for some other opinions.

Thanks in advance
Paul



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[Scalloway]

You could just charge the ltd 45p per business use of the pickup.

 

[MyAccountantOnline]

.......
Would it be possible to sell the vehicle to my ltd company?

Yes

.......... Is there any resin this would look dodgy to HMRC?

Not from what you've said

Has your accountant explained about the tax and National Insurance charge (benefit in kind) on company vehicles? It's often why small company directors keep vehicles in private ownership and charge the company for business mileage as mentioned above.

 

[MyAccountantOnline]

.......
Would it be possible to sell the vehicle to my ltd company?

Yes

.......... Is there any resin this would look dodgy to HMRC?

Not from what you've said

Has your accountant explained about the tax and National Insurance charge (benefit in kind) on company vehicles? It's often why small company directors keep vehicles in private ownership and charge the company for business mileage as mentioned above.

 

[LuvinF56]

Thanks you for your answers they haven't told me about tax and national insurance. If it will be solely used for the business would I liable for that? As I'm thinking of retiring the old banger van and using the pick up as them aim vehicle.


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[Scalloway]

Being used solely for business means the vehicle is not kept at your home and you only use it for work. The NI charge is here.

https://www.gov.uk/expenses-and-benefits-company-vans/what-to-report-and-pay

 

[LuvinF56]

I run a maintenance company my base of operations is my home so would I still qualify? Sorry for all the questions


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[john1989]

For a benefit in kind to arise it has to be available for private use, and not necessarily used for private use.

As it would be parked up at home, it would be difficult to argue the car is not available for private use.

 

[MyAccountantOnline]

Thanks you for your answers they haven't told me about tax and national insurance. If it will be solely used for the business would I liable for that? As I'm thinking of retiring the old banger van and using the pick up as them aim vehicle.


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As others have mentioned it's being available for private use which is the issue.

Ask your accountants to tell you how much it will cost, and save, to transfer the vehicle to the company to see if it's worthwhile. It's the sort of calculations I regularly do for my clients.

 

[MyAccountantOnline]

Thanks you for your answers they haven't told me about tax and national insurance. If it will be solely used for the business would I liable for that? As I'm thinking of retiring the old banger van and using the pick up as them aim vehicle.


Sent from my iPhone using Tapatalk

As others have mentioned it's being available for private use which is the issue.

Ask your accountants to tell you how much it will cost, and save, to transfer the vehicle to the company to see if it's worthwhile. It's the sort of calculations I regularly do for my clients.