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!
- Am I the only one who finds this annoying 1,169 41
- Flat Rate VAT 239 8
- Sage Drive Queue.dta file lock out 705 15
- Practice software 1,183 17
- Starting your response in the subject line of the form 308 7
- When to register or not for PAYE 534 11
- Invoicing for monthly clients 490 8
- Seeking advice: With recruitment agencies for temporary placements, is VAT taken off the whole sum received from the client, or just what the company retains? 231 5
- How do you pay Inheritance Tax when HMRC haven't demanded it 568 8
- Redundancy pay 320 9
- Final CT Return - liquidating company 233 2
- VAT on farm machinery sold 261 5
- Servicing AE fees 183 2
- VAT Receipts 272 8
- Changing pay dates on Moneysoft 155 2
- P800 problems again 117 1
- Company accounts for £350 990 27
- Directors Loan Account Question 438 12
- Setting up a Charity Trust?? 156 4
- Seeking advice: Osetting Directors Loan at Startup 235 5
- FRS 101 Software 338
- Motor Traders Assistant Bookkeeping Programme queries 304
- Continuity of practice-ACCA 299
- Tracesmart/Lexis Nexis AML software? Any opinions? 274
- French ConnectionUK 240
- Fundraising for friend - minimise tax? 214
- Can anyone explain Indian Minimum Alternate Tax 203
- Recommended International mobile phone coverage and costs? 202
- APN's 186
- Penalties for late filing of P11D forms 183