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Backdating van sale to company

Can this be done ?

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We are preparing our clients accounts to 28th February 2020 for a new client

We have noticed large director loan debit balance  mainly due to a couple of vans that were in directors name that were paid from the company.  

Can we backdate the agreement to 28th February 2020 for the sale of vehicles from director to the company which will clear some of the director loans.

 

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RLI
By lionofludesch
26th Mar 2020 12:02

Depends.

Who really bought the vans ? Why does a director of a company need two vans ?

At the moment, I'm not prepared to scream "no back-dating" but tell us more.

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By tom123
26th Mar 2020 12:26

Are they on finance, if so who is paying the finance company?

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RLI
By lionofludesch
26th Mar 2020 12:36

Why do you need to "backdate" it anyway, Jim ?

If he sells it to the company now, it'll go towards cancelling any s455 charge .

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By JimLittle
26th Mar 2020 13:54

Yes both vans are on finance and there are two employees in the company. Its a courier company so each employee will need a van

I only mentioned about backdating as I know normally its not possible as we are going back less than a month

The Director Loan balance is £30,000, market value of the vans is £21,000 and leaving Director loan balance of 9K

Hoping to file the CT600 before 9 months are up and secondly to reduce the requirement of filing a P11d by charging interest.

If says we filed the CT600 in March 2020 with a 30K Director loan balance does the client have to pay 32.5% tax and then claim it back by filing the amendment.

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Replying to JimLittle:
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By Matrix
26th Mar 2020 23:52

I don’t have a view on the van but if s455 tax is paid then I think a claim can be made for this to be repaid 9 months after the end of the accounting period in which the participator loan is repaid.

I don’t know what you mean by filing an amended tax return.

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