hire purchase transfer to family member
monkeypuzzle47
Registered Posts: 134 Dedicated contributor 🦉
Hello fellow members I wonder if anyone can help me please.
I have a partnership client (2 partners couple). They purchased a vehicle on hire purchase in 2015 and I have been reducing the liability each year in the usual way on the balance sheet and treating the interest. When I discovered that the last 2 instalments for 1718 had not cleared the business account they informed me that they had transferred the balance of the agreement to a family members name so their credit rating is improved (they want to apply for a mortgage). The finance is now in a family members name. It is unclear if they are refunding this family member or whether the family member has agreed to pay the finance for them at this stage. Im waiting on a reply but i suspect they are giving them back the money. Thoughts anyone? and how should I treat this now in the accounts and for capital allowance purpose's? The vehicle is still owned by the partners.
Thanking you kindly in advance.
I have a partnership client (2 partners couple). They purchased a vehicle on hire purchase in 2015 and I have been reducing the liability each year in the usual way on the balance sheet and treating the interest. When I discovered that the last 2 instalments for 1718 had not cleared the business account they informed me that they had transferred the balance of the agreement to a family members name so their credit rating is improved (they want to apply for a mortgage). The finance is now in a family members name. It is unclear if they are refunding this family member or whether the family member has agreed to pay the finance for them at this stage. Im waiting on a reply but i suspect they are giving them back the money. Thoughts anyone? and how should I treat this now in the accounts and for capital allowance purpose's? The vehicle is still owned by the partners.
Thanking you kindly in advance.
0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 325 NEW! Qualifications 2022
- 160 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 95 AAT Level 4 Diploma in Professional Accounting
- 8.9K For accounting professionals
- 23 coronavirus (Covid-19)
- 273 VAT
- 92 Software
- 275 Tax
- 138 Bookkeeping
- 7.2K General accounting discussion
- 202 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 583 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership