Hi, I am new here so please bear with me!
I am currently a self employed (sole trader). I do work (deliveries and servicing) for a couple of companies. About 70% of my work comes from one company.
Due to the directors retiring in this company, I have decided to buy their shares (a small ltd company not listed). I would then become employed by the company in early April 2007.
My question is this - the van used for deliveries etc is currently owned and registered in my personal name. Can the company rent the van from me?
If possible, I dont want to sell the van to the company because, a) the outstanding finance on the van is more than its current value (had to swallow the vat as I am not vat registered) and b) If i did sell the van at such a price to clear the loan, then I would be clobbered with a considerable balencing charge! (something i would prefer to avoid). I won't reach the point where i can sell the van at a value where i can balence the loan/tax issues till approx jan 2008.
There maybe other possible solutions that I have not thought of - if anyone can come up with an alternative.
Thanks to all who ponder over this one.
Richard
I am currently a self employed (sole trader). I do work (deliveries and servicing) for a couple of companies. About 70% of my work comes from one company.
Due to the directors retiring in this company, I have decided to buy their shares (a small ltd company not listed). I would then become employed by the company in early April 2007.
My question is this - the van used for deliveries etc is currently owned and registered in my personal name. Can the company rent the van from me?
If possible, I dont want to sell the van to the company because, a) the outstanding finance on the van is more than its current value (had to swallow the vat as I am not vat registered) and b) If i did sell the van at such a price to clear the loan, then I would be clobbered with a considerable balencing charge! (something i would prefer to avoid). I won't reach the point where i can sell the van at a value where i can balence the loan/tax issues till approx jan 2008.
There maybe other possible solutions that I have not thought of - if anyone can come up with an alternative.
Thanks to all who ponder over this one.
Richard
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