Thanks for your reply,
So, the interest cost, capital allowances on the van, petrol and all associated running costs.
Basically the company wants the van and will pay the monthly fee for the finance and all the running costs but the van will be in the directors name.
Is that ok for the company to still claim tax allowances on these costs?
Yes they have just turned over 90k in this last year but they have only gone over the threshold because of the insurance and products. The insurance and products both have a profit on them so I don't think they can class them as disbursements.
Would the insurance still need to be included in the total turnover if it included a profit?
Its a Limited Company with a husband and wife as directors.
They supply training in a gym where they train children and adults.
They supply products like gloves, belts, mouth guards etc again for children and adults, they are brought in bulk and make a profit on each item.
They arrange insurance for the people that train competitively but they also make a profit on this. they are not a provider but they purchase the insurance on behalf of the athlete and add on a profit.
They are not a government funded scheme and they are not a regulated institution either.
the insurance does add on a profit so I don't think this is a disbursement.
With this information would you be thinking that they need to be registered and everything should have VAT on it? even the insurance and children's lessons and products?
So he will have assets, money in the bank/ stock etc but when he closes the business can the shareholder not take the cost of these assets and claim the relief..
Sorry I said no consideration but I mean from a third party
Thank you - its for various shares losses over the year so Ill just declare it on the tax return to carry forward to future years instead. thanks for your help
My answers
Thanks for your reply,
So, the interest cost, capital allowances on the van, petrol and all associated running costs.
Basically the company wants the van and will pay the monthly fee for the finance and all the running costs but the van will be in the directors name.
Is that ok for the company to still claim tax allowances on these costs?
Thanks for answering
Yes they have just turned over 90k in this last year but they have only gone over the threshold because of the insurance and products. The insurance and products both have a profit on them so I don't think they can class them as disbursements.
Would the insurance still need to be included in the total turnover if it included a profit?
Thanks for your help
Thank you so much for answering.
Its a Limited Company with a husband and wife as directors.
They supply training in a gym where they train children and adults.
They supply products like gloves, belts, mouth guards etc again for children and adults, they are brought in bulk and make a profit on each item.
They arrange insurance for the people that train competitively but they also make a profit on this. they are not a provider but they purchase the insurance on behalf of the athlete and add on a profit.
They are not a government funded scheme and they are not a regulated institution either.
the insurance does add on a profit so I don't think this is a disbursement.
With this information would you be thinking that they need to be registered and everything should have VAT on it? even the insurance and children's lessons and products?
I really appreciate your time.
thank you for the useful link
Sorry, I wasn't being vague I didn't realise the amount mattered. But its about 30k
I think I am getting confused slightly.
So he will have assets, money in the bank/ stock etc but when he closes the business can the shareholder not take the cost of these assets and claim the relief..
Sorry I said no consideration but I mean from a third party
The assets and shares that are being held in the company, but he wont be getting any consideration for them.
Am I right in thinking that if he has money in the company this would increase the share value?
Thank you - its for various shares losses over the year so Ill just declare it on the tax return to carry forward to future years instead. thanks for your help
Thank you,
So am I right in thinking that the main positive of having a group is to share the losses.
If both trades are going to make a profit then 2 separate limited companies would be best?
Thanks
Thank You very much for your help. I think I need to get an insolvency practitioner involved so as to avoid these consequences. thanks