I am in the process of compiling the final accounts for a business that has ceased trading.
The only fixed assets of the company are a laptop and computer with a NBV of c1k.
The sole director has taken ownership of the assets.
To save the director taking funds from the company and paying them immediately back in is it acceptable to post the sale proceeds to the Directors Loan Account and clear the balance with a dividend?
Further to Bill's post, while in the same situation as you I found the following on HMRC website :
Accounting for VAT when your registration is cancelled
When you cancel your registration, you must account for VAT on stock and certain assets you have at the close of business on the day your VAT registration is cancelled. You'll need to include assets like interest in land - but only where supplies, if made, were taxable - and tangible goods on which you could reclaim VAT when you bought them. Tangible assets include items like unsold stock, plant, furniture, commercial vehicles and computers. You don't need to worry about intangible assets like patents, copyright and goodwill.
How to work out the VAT due
You can work out the VAT you owe by valuing the relevant land or goods at the price you would expect to pay for them in their present condition. If you cannot work this out, then you should use the price you would expect to pay for identical or similar land or goods. If you can't work this out, then you should use the price the goods would cost to produce at the time you cancelled your registration.
If the total VAT on the relevant assets is £1,000 or less, you don't need to pay any VAT. So if the relevant assets are all standard-rated, you don't have to account for VAT if their total value, including VAT, is £6,000 or less. If they're worth more than this, then you must account for VAT on all the goods you have on-hand on your final VAT Return.
