Further questions about incorporation

I have a few more questions regarding incorporation of my sole trader mechanic client if anyone can help at all.

1.  Is it feasible for him to keep his garage in his own name and rent it out to the company?  He thinks commercial rent would be around £500 per week - obviously he would need to declare this via self assessment?

2.  On the above subject, is there any benefit to sharing the rental income with his (currently unemployed) wife - apart I suppose from the benefit of the allowance?

3.  He has around £50k of equipment/stock in his garage - is this OK to transfer to the new company (debit assets, credit DLA) or would HMRC need to be aware of this amount?

4.  He thinks goodwill would be around £30k - again OK to transfer or need HMRC's involvement?

5.  Final query - sickness insurance - can this be paid by the company (around £160 per month) as he says it's vital to his business (I guess he would say that) but, if it was, I guess any payout would be taxable income to the company?

Any help gratefully received!

 

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zebaa |

Most answered but beware

cparker87 |

@cparker87

jaybee661 |
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Whoa - are you sure you are up to this?

dbowleracca |
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