I'm getting very different views on this and starting to question my own ability.
Sole trader just incorporated with 2 directors who are working as empoyees and 2 employees. The Vans were bought by each directors when they were sole traders on HP. Both Vans are still under HP. If they can't change the lease over, can the directors rent them to the company and then reclaim all fuel receipts. The vans can be used by any employee for business use only including travelling from home to each job as no office.
If yes is it a BIK issue or do they just need to pay fuel scale charges on the VAT on the fuel receipts.
The directors should then just submit a self assessment for the rental income and pay any tax due. Are there any allowable expenses they can offset against the rental income? Is the cost of the HP in their name allowable for their own self assessment?