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Options when van purchased in wrong name?

New van purchased to be used solely by business. However, wrong name put on registration & logbook?

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Director of new Ltd Company has purchased a new van to be used solely by the business. However has used his own name, not the company name, on the purchase/registration/logbook and as such has been told he cannot reclaim the VAT or make use of the capital allowance. Does he have any options? Many thanks!

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15th Mar 2019 20:00

If he's not VAT registered in his own right, then on Q1 - I vove no chance.

On Q2 (capital allowances), maybe there are options, but before committing, would AMR be a better option?

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to SteLacca
15th Mar 2019 20:14

Hiya, thanks for the reply.

He is indeed VAT registered.

Sorry rather new to this, what does AMR mean? Thanks again.

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to BeNormanYo
15th Mar 2019 21:13

BeNormanYo wrote:

Hiya, thanks for the reply.

He is indeed VAT registered.

Sorry rather new to this, what does AMR mean? Thanks again.

It means Accountant Maybe Required.

This is a forum for accountants. Your problem appears to be that you are not an accountant and have made a poor business decision. Get an accountant who will help you retrieve the situation, as far as possible, and prevent you making any more costly errors.

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to Accountant A
15th Mar 2019 21:58

I am admittedly in the early stages of my accounting career. I am new to this forum and was unsure on the jargon.

Also not my business, and not my decision, I would have advised otherwise had I had the chance. Thank you for the warm welcome regardless, I will pass on your advice.

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to BeNormanYo
15th Mar 2019 22:23

BeNormanYo wrote:

I am admittedly in the early stages of my accounting career. I am new to this forum and was unsure on the jargon.

A tip that will stand you in good stead for your accounting career. Never ever offer advice to family and friends. Just say "Not my area of specialism and I wouldn't want to give you bad advice".

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to Accountant A
16th Mar 2019 05:15

Accountant A wrote:

It means Accountant Maybe Required.

Made me smile!
OP doubt this was what was meant but Accountant A's sentiments are correct, best to not get involved in matters such as this in the early stages of your accounting career.
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to BeNormanYo
16th Mar 2019 05:10

BeNormanYo wrote:

He is indeed VAT registered.

Really? Or are you misinterpreting the question asked by SteLacca?

Same question: Is the director, personally, in his own right in business and VAT registered?

Hint SteLecca is asking about the individual, not the limited company.

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16th Mar 2019 09:03

Well, I'm going to break ranks here and answer the question.

The VRD records the registered keeper and not the legal owner. It's completely irrelevant for both VAT and cap alls purposes.

It's a myth that an invoice MUST be in the business name, just very highly recommended for obvious reasons.

Do some reading around those two points. I agree with the others that you need to be careful about not getting in beyond your comfort zone (which appears limited at the moment, being brutally honest).

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16th Mar 2019 09:51

To minimize further error, you should ask the Director-of-new-Ltd-Company why he bothered forming a new Ltd Company if he's just going to contract in his own name all the time ?

Possible, of course, that he was bullied into it by the dealers who wouldn't offer finance to the Ltd Company on the grounds that it was new. In which case, I refer you to the earlier response by my learned colleague, adam.arca.

But it would have been better to contract in the company's name and personally guarantee the credit. If it wasn't bought on credit, you just need to put it down to daftness.

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16th Mar 2019 11:52

Why not change the name on the log-book by filling in the slip, tearing it off and send it to DVLA with the business name on it?
And inform the van's insurers too.

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