Is there anything wrong with this?

Is there anything wrong with this?

Didn't find your answer?

Hello

Would really appreciate any opinions on this.

Sole trader incorps 20/03/2015.

Had bought a van in 14/15 for £5,000. There is no AIA in period of account of cessation, but could we draw up a short period of account in 15/16 (say 6th April to 30th April 2015) to allow the AIA claim in 14/15? Given the incorporation date and that he didnt start invoicing as Ltd co until late April I was hoping this wouldn't look too contrived.

Also, we intend to elect for the transfer to be at TWDV for CA purposes to avoid balancing charges. But for accounting purposes is there any reason we can't

Dr Assets £5,000 and Cr Director Loan £5,000?

Thanks in advance for any help

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By Stuart.thomson
09th Jul 2015 12:00

I think incorporation relief will automatically apply but you then negate it by recognising a sale to the van for cash (albeit in a directors loan account) so I think subject to electing what you are proposing works.

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