HP agreement in directors name

HP agreement in directors name

Didn't find your answer?

I have a client where the new company couldn't get hire purchase, so the agreement is in the directors name but the payments come from the business account?  The vehicle is a pool car, with business logo's on it?

Replies (8)

Please login or register to join the discussion.

Euan's picture
By Euan MacLennan
01st May 2015 13:36

And ...

... what is your question?

Thanks (0)
RLI
By lionofludesch
01st May 2015 13:56

Bless me, Euan

They are the bits before the two question marks.

Thanks (0)
avatar
By tlb
01st May 2015 14:00

Do I bring the car into the company accounts and the finance through the directors account?

 

Thanks (0)
RLI
By lionofludesch
01st May 2015 14:14

Yes

Sounds like the directors have taken out this HP contract as agents for the company.  It'd be nice if that had been minuted, obviously.

Finance through the directors' account ?  Why ?  From what you say, the directors haven't financed this; they've just put their name to an agreement.  The company has paid all the money out.

Thanks (0)
avatar
By User deleted
01st May 2015 14:33

Not so sure, Lion

If the company could not obtain HP finance then presumably at best the director is acting as undisclosed agent, which makes him the principal liable under the agreement.

The facts of the matter appear to be that the director has purchased a car and the company is meeting his financial liabilities under the agreement. The logo on the car is a dead herring. He could of course consider charging the company for the use of the car, but he might find that is prohibited. I wonder who has insured the car (and for what use(s))? Whose name is on the V5? Just things to consider in what I think is a far from clear-cut matter.

Thanks (0)
RLI
By lionofludesch
02nd May 2015 14:23

Noted - but it'd be a hard-hearted Inspector who'd take the point.

The intentions are clear.

Thanks (0)
avatar
By User deleted
02nd May 2015 19:17

And ...

... you've never come across a hard-hearted Inspector? I've met plenty ;¬)

Thanks (0)
By Marion Hayes
02nd May 2015 19:40

Common problem

and accepted target for HMRC paye compliance visits with a new company

Mobile phone contracts are most common I suppose, but we long ago got into the habit of asking to see all the contracts and leases as I am afraid I never met an Inspector who wasn't keen to take the point.

Thanks (0)