Sole Trader to Ltd - vehicle on finance

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Heselwood
Heselwood 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

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  • Bertie
    Bertie Registered Posts: 376
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    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.

  • stevo5678
    stevo5678 Registered Posts: 325
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    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).

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