The Book-keepers Forum (BKF)

Post Info TOPIC: Company van inadvertently paid for by director


Veteran Member

Status: Offline
Posts: 84
Date:
Company van inadvertently paid for by director


Happy New Year to everyone,

I wonder if anyone can help here, in April 17 a company that I work for bought a van on HP. We claimed the vat and it has all been put through, but no HP payments were ever taken. I know it's a bit naughty but the director didn't get in touch with the HP company as money was tight for quite a few months. However, in Oct 18 the other director realised that the payments had been coming out of his personal bank account all of this time. The company is still not financially secure and able to pay back this money to the director. The HP agreement was for 47 months, so still quite a lot to pay on it, the company have been paying for it since Oct 18, but now they are thinking that the director who has paid most of the payments so far, may as well buy it from the company. The year end is 31.03, so in the 2018 accounts (as they were done in Nov 18 so by then we knew that the director had paid the HP privately) are showing it as a directors loan. My question is, what is the best way to sell in to him and show it costing the company as little as possible? The company still owe him the previous 16 months worth of payments, if he buys the van at the guide price that it is currently worth 10680, the company would still owe him the loan (HP payments) wouldn't it? Really sorry if it's a simple question, I can't get my head around it and I do hope that it makes sense.

Thank for reading

Nicola



__________________

Nicola



Guru

Status: Offline
Posts: 856
Date:

Hi Nicola

In a rush, but if there is still outstanding HP are the Company allowed to sell the van? I maybe wrong but I always thought that the lender is still the legal owner until the agreement is settled, might be worth speaking to the lenders.



__________________

Doug

These are only my opinions of how I see things and therefore should not be taken as advice



Veteran Member

Status: Offline
Posts: 84
Date:

Hi Doug,
Thanks for your reply. The company have got in touch with the lender and got a settlement figure-sorry I probably should have said originally.
Many thanks

__________________

Nicola



Guru

Status: Offline
Posts: 856
Date:

Hi Nicola, a few things to consider if I have read this right (which I am not sure I have)

Yes the company will still owe the Director for the DLA

The sale would take place at market value but seeing as the Company are VAT registered they will have to charge VAT and presumably the Director will not be able to claim this back

I assume that AIA was claimed on the full purchase price so this would then bring about a disposal and CT on the gain

The company no longer has a van

Not sure who if anyone would actually gain out of this



__________________

Doug

These are only my opinions of how I see things and therefore should not be taken as advice



Veteran Member

Status: Offline
Posts: 84
Date:

Hi Doug,

Thank-you for the detailed reply, very helpful.

Sorry for my delayed response.

Nicola



__________________

Nicola

Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.

Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  

2007-2019 The Book-keepers Forum (BKF). All Rights Reserved. The Book-keepers Forum (BKF) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Book-keepers Forum and BKF are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Book-keepers Forum. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Book-keepers Forum. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: info@bookcert.co.uk.

Privacy & Cookie Policy  About