Self employed and Company
Have had a daft question from a Client.
He transferred into a Limited Company last year after many years as a sole trader.
He is trying to find a way of getting his motor expenses through the Company without a benefit in kind (as he drives a Maserati!).
I have all along said its either mileage or benefit in kind but he has come up with a suggestion:
All trading goes through the Company as before. However, he is also self employed and puts all motor expenses through that Company and charges the Company a fee which includes the motor expenses. The 'trade' would be delivering the items made by the Company......
As far as Ican see there are a few problems:
1. Connected parties and therefore disclosure in the Company accounts.
2. I would expect the Revenue to challenge that there is no actual trade in the sole trader.
I am sure there must be anti avoidance rules somewhere??
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