Im just doing my accounts - just finished my second year and was looking at the possibility of moving certain assets from my personal ownership to the company eg PC/office equipment.
Im currently a sole trader. I understand that I can transfer them at market value and then claim capital allowances - at 18% (not the AIA rate). Firstly is this correct?
I want to go Limited this year - can I then transfer the assets and allowances at the values applicable after the above (ie the b/fwd figure) and how would I go about this? Ie would I just do a S266 CAA 2001 Election? Would this have any impact on my personal tax position? Or would it just be easier to move the assets/claim the Cap allowances once the Ltd co has been set up and take a hit on the self employed tax?
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Hi Joanne! Where you been, girl!? I am still waiting on that G&T!
I understand the same as you, that you can bring in owned assets at MV and claim the 18%. When you move to Ltd Co, you would transfer across at NBV. So the ST would sell the LC the equipment.
However, if you are doing this in the same tax year, its possibly more hassle than its worth, and you might be better just putting it straight into the LC. I imagine you are not talking about mega amounts?
Hi Michelle Yes apologies long time no speak. Its absolutely AGES since Ive been on here so I reckon I have lots to catch up on. Ive just been flat out with work - not helped by having to collect son every night from his job after midnight/1am due to lack of buses and trains to the delightful place I live! He is a chef and was working horrendous hours in Manchester - now even worse as he started a new job from 8am - 1am 5 days a week, so amongst getting him sorted with normal stuff, we've been running around to try to find a flat (nightmare in itself - estate agents........what a pain!), which he finally moved into yesterday. Aggghhhh. At least now I will be able to sleep at decent hours and concentrate a bit more on me and what I want to do - so I expect to be back on here more regularly..... once Ive caught up with the backlog created by the flat move. Am also setting up new company as Im starting a new career as an agent to an ex footballer (Im his bookkeeper already). Fun and games.....am shattered as Ive not had a single break this last 18months apart from one night away!!
So I havent forgotten the G&T - I promise we will do something soon!!! So Sorry.
Thank you as ever for the above - I was just trying to keep get my tax bill down further (but without causing future complications). Reckon it will just have to go in the newco - best all round I reckon.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Hi Michelle
Shall we book a date in the diary to meet for a beer? Cos otherwise more time will just disappear! Am thinking towards end of August sometime (but not 27th as that's my Mums birthday!) ?? Any ideas for where to meet?
Jo x
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
