Share this content
0
306

leasing vans on HP to company

to claim the HP interest

A sole trader (gardener) incorporated the business but cannot transfer the 5 vans into the ltd company because they are on HPs. So, the HP payments will continue to be paid by him personally. The fuel will continue to be paid by the director personally and the company will reimburse business milage (assuming no private use) at 45p (therefore no income tax implications and the company will claim deduction for the expense). The VAT will be claimed at advisory rates based on business mielagae logs (not sure how easy that will be unless logs maintained properly). I think this works taxwise. 

However, I was wondering if there are any tax or other problems if the director leases the vans to the company so that he can deduct the HP interest against rents? if that is the case, the company will claim the fuel receipts and VAT on them. 

Many thanks in advance. 

Replies

Please login or register to join the discussion.

There are currently no replies, be the first to post a reply.

Share this content