Limited company and sole trader?
Limited company owned jointly by husband & wife both of whom are directors.
Van required for limited company use but incorrectly bought in husbands name.The transaction cannot be unravelled because of the way in which the purchase was financed.
Is this a possible solution?:
Husband to become registered for vat so that vat input tax can be reclaimed
Husband to be registered as a sole trader in business of vehicle & equipment hire-it is possible that he could also buy equipment for rental to third parties
All van running expenses and finance charges would require to be paid by the husband
Every quarter a management charge to be levied on the limited company re vehicle running expenses and finance charges
If this is possible how would the transaction be viewed by HMRC?
Or maybe I am making it too complicated? Perhaps there is a simpler solution?