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Sole Trader to Ltd - vehicle on finance

HeselwoodHeselwood Registered Posts: 6
in General accounting discussion
Any advice on this please.....Builder currently trading as a sole trader wants to become and Ltd. Most assets are easy as they will just transfer in at market value. There is 1 van on finance, how should this be treated? Obviously the finance agreement is with him and not the new Ltd. Thanks in advance

Comments

  • BertieBertie West Midlands Registered Posts: 376
    Your client's first move is to call the HP company, will they transfer the liability to the company?

    Upon knowing the answer to the above dictates the second move.

    Heselwood
  • stevo5678stevo5678 Well-Known Cheltenham Registered Posts: 325
    Run it through the DLA (instead of a HP account) and claim interest as normal . Can still show it as an assetin the business (substance over form).
    Heselwoodburg
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