I've taken on a new client, and I just want to run this scenario by the tax bods, to see what their comments are...
Sole trader turns into Ltd Co
Sole trader van, already 100% w/o for capital allowances, is not transferred into the company name via reg certificate, and no market value sales proceeds are included on the cessation capital allowances comp in sole trader
However, van appears as fixed asset in Ltd Co accounts. No capital allowances are given in the company tax comp
All motor running costs are in the company P&L, and full VAT has been claimed.
Van has some personal use, possibly significant, but may be able to substantiate it being insignificant.
Since April 2013, the client has installed a device that monitors personal and business mileage (pretty cool little monthly report, to be honest!)
Looking back at the year to March 2013, I am debating how I should tackle the motor expenses. My thoughts are -
Is it ok that full VAT has been claimed?
How am I going to adjust for personal use - I don't have personal mileage figures up to this point, in order to put in a reimbursement from the directors (15p per mile for personal fuel, I believe)
A P11D has not been submitted (and I don't really want to go that route)... but then, can the asset really be deemed as a company vehicle, anyway? Should I take it out of the accounts now?
Looking forward -
Is there any major implication of the van not being in the company name, given that no CAs have been claimed?
If I have to dispose of the van, would any proceeds to sale have to be included on the company tax comp, if no CAs have ever been claimed in the company?
So.. my question is.. what would you do? I just feel a little bit thrown by the fact that the van isn't in the company name, and I think the heat is getting to me!
