Closing my Ltd - bicycle disposal

[Lance]

Yes I've considered this though legally I would not be able to use the bike during this period I imagine. It would however mean I have to keep paying my FreeAgent subscription. Are there any other pitfalls to this approach other than the hassle of dormant co accounts?

no law in the land says you can't use the bike.
There is arguably a BIK cost, but new rules mean this isn't an issue as long as you bought the bike for mainly business use originally.

Sign up for Mettle/NatWest banking as you get FreeAgent for free.

[Rafd]

Thanks for the heads up about RBS, I've been wasting a lot of money on FreeAgent!

It was about 3k including VAT.

[Rafd]

no law in the land says you can't use the bike.
There is arguably a BIK cost, but new rules mean this isn't an issue as long as you bought the bike for mainly business use originally.

Sign up for Mettle/NatWest banking as you get FreeAgent for free.

Apparently with Mettle "To get FreeAgent for free, all you have to do is make at least one transaction a month from your Mettle account". I guess it is ok to just transfer money in then out again and keep the company dormant?

[Lance]

Apparently with Mettle "To get FreeAgent for free, all you have to do is make at least one transaction a month from your Mettle account". I guess it is ok to just transfer money in then out again and keep the company dormant?

monthly bike insurance?

[Rafd]

monthly bike insurance?

Would a transaction like that not prevent the company from remaining dormant?

The ideal option would be to keep the company going until the bike is over a year old and so will qualify for capital allowance. Can anyone tell me if this will work - my last invoice was end of April. Is it this date that counts as 'cessation of trading' or can I decide the date myself?

[Lance]

Would a transaction like that not prevent the company from remaining dormant?

I'll google it for you shall I? Dormant company: what must a company do to stay dormant?

[Craig@Clarity]

Would a transaction like that not prevent the company from remaining dormant?

The ideal option would be to keep the company going until the bike is over a year old and so will qualify for capital allowance. Can anyone tell me if this will work - my last invoice was end of April. Is it this date that counts as 'cessation of trading' or can I decide the date myself?

Write it straight off to the P&L and post the proceeds to the same account to either create a profit or loss on the disposal of the asset. There won't be a balancing charge as you've not capitalised it or claimed AIA on it as it all happened in the same financial year. If you're buying the bike off the company yourself, you'll need to put a price on the bike. What is the price? How much would you sell it on the open market? Have a look at ebay etc and value it that way.

[Rafd]

Write it straight off to the P&L and post the proceeds to the same account to either create a profit or loss on the disposal of the asset. There won't be a balancing charge as you've not capitalised it or claimed AIA on it as it all happened in the same financial year. If you're buying the bike off the company yourself, you'll need to put a price on the bike. What is the price? How much would you sell it on the open market? Have a look at ebay etc and value it that way.

Thanks, sorry I meant AIA not capital allowance. What I meant to ask was whether it is possible to deliberately keep the company open a little longer in order to start another accounting period and file a new set of accounts which would mean the purchase would no longer be within the final period and so qualify for AIA.

[Craig@Clarity]

Thanks, sorry I meant AIA not capital allowance. What I meant to ask was whether it is possible to deliberately keep the company open a little longer in order to start another accounting period and file a new set of accounts which would mean the purchase would no longer be within the final period and so qualify for AIA.

From a corporation tax point of view it makes no difference.

[Rafd]

From a corporation tax point of view it makes no difference.

In relation to starting another accounting period?