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Post Info TOPIC: Company van bought by Director in their own name
GillyP


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Company van bought by Director in their own name
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Hello everyone,

I hope someone could clarify something for me.  One of my clients set up his ltd company a year ago, and is hoping to upgrade his current van to a sparkly new one, however this would be on an HP / finance deal of some sort. (The old van was bought outright so no finance deal needed then).  He is the director, and his mum is a director in name only (ie she doesn't participate daily in the company activities).  Anyway, he can't get finance for his company as it is new, so no credit rating as such.  So my question is can the van be bought on HP in his mum's name as a director of the company, and accounted for as if it was in the company name?  It would only be used for company business, mum wouldn't be using it, and the company would be making the payment for the deposit and the repayments.  He would be looking to reclaim the vat through the company vat returns also.

Any help gratefully received!

Thanks

Gill



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MarkS


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Hi Gill

Short answer is no.

But expect the finance company could put everything in the company's name with the mum acting as a guarantor.  That would be one way to do it.

At the end of the day the finance company is just wanting to make the sale so they tend to do whatever you want provided they dont have any risk.

Regards

Mark



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Mark Stewart CA

http://stewartaccounting.co.uk/

Providing accounting, bookkeeping, payroll and tax services to small and medium sized businesses across Central Scotland and beyond.
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