Going Limited

marine

Hi Guys

Just need to check a few things a client of mine is now going Ltd (currently a sole trader) and wanted to confirm that when transferring the balance sheet across i bring the debtors and creditors across as normal, bank account will be transferred into Limited Company name (at bank) and that the capital account would then come in as Directors Loan Account?

Im 99% sure this is right just need to confirm?

Another question is that he has a van which he only uses for business use but is in his personal name, can i still bring this across? or will he need to get the log book transferred into the companies name?

Many thanks in advance

Tim

deanshepherd

You need to assess whether you want to bring all the assets across or not and, if you are, whether you are going to disapply incorporation relief - which is otherwise automatic.

You also need to assess the impact on the capital Allowances claims of both sole-trader and company when deciding what assets to transfer and at what value; as well as any future benefit in kind charges that may arise.

I rarely bring across debtors and creditors but then again most of my clients are in the service industries where the goodwill tends to sit in contracts rather than assets.