Treatment of Van for a company that is financed by director

Van for company financed by director

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Those starting out as limited companies are often unable to obtain HP finance in the limited company name in the first few years due to lack of credit history.  So what is the most tax efficient method of dealing with this from a personal and corporation tax point of view if you cannot claim AIA or WDA in the company.  Can the director lease the van to the company, disclose the income on his tax return and claim AIA personally?  Or some other way?

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Melchett
By thestudyman
29th Sep 2016 08:44

Maybe not the answer you are looking for, but the director could negotiate credit in exchange for a personal guarantee, or a charge on a company's assets?

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RLI
By lionofludesch
29th Sep 2016 11:00

I've found that finance companies are generally happy to include the company's name on the contract - along with a more reliable credit risk.

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