Hi i am hoping that somone with a bit more experiance in this field can help
A new client is in there first year of trading as a ltd company. She has taken out a loan through the ltd company to purchase 2 caravans to rent. But the caravans have been put in her personal name as the caravan park would not allow them in the ltd company's, she got told at the time of applying for the loan that she would only be accepted if she had a ltd company and bank account which the broker set up for her.
The caravans have been paid for out of the business account. she is currently paying for pitch fees etc over £10k personally due to money not been available in the company bank.
my client is now worried with the caravan sites been closed and not earning any rental to cover the loan payments etc that she cant go on trading loosing everything
my Question is should the caravans go on the asset sheet of the company , or would it be best for the company to act as a booking agent and treat the cost of the loan as a directors loan and pay the charges, and the rental on her self assement ?
many thanks in advance