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Van bought private, but use in the business

Van purchase

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My customer bought a van for business use and this is the main purpuse / use of the van with his own savings. The van is registered under his name, not on the company. My questions are:

1.What will be the journal entry to include the van into company's books?

2.Does he qualify for some tax allowances?

I hope I made myself understood as English is not my first language. 

 

Replies (6)

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By Accountant A
30th Nov 2018 18:42

I don't think your English is the problem.

Are you qualified to undertake the work you are doing? Your questions suggest that you perhaps lack knowledge in this particular area of tax.

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By vali
30th Nov 2018 21:26

Yes, I am qualified. I do have a shortage in practical experience which I intend to overcome. Just the begging is harder. I will read again the HMRC manuals.

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ALISK
By atleastisoundknowledgable...
30th Nov 2018 22:40

I think that AA was meaning not just academically qualified but in practice as well.

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By vali
02nd Dec 2018 15:29

That is what I am trying to do: gain some experience on small businesses. I can spare some hours to gain experience if you have extra work . How else I can learn? Asking silly question and to the job.

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By Accountant A
30th Nov 2018 22:17

The company does not own the van so it doesn't go in the company books.

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By SXGuy
03rd Dec 2018 09:53

It should be pretty straight forward really, if your qualified regardless of expierence.

If the van is in HIS name, what does that tell you re company expenses?

Clearly it wouldnt be a company expense.

About the only thing left open to your client, is to claim millage allowance, and use that to offset the payments.

The only tax break is the millage allowance, nothing else.

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