Hi and welcome .
I have question just open a LTD company and own my private van and like to transfer the ownership to my new company . I pay with my personal money for van 6800 pound , because company is just start not have money to pay me for the van can I make director loan for the 6800 ?
Thanks for help
Hi robedywer
If you have an asset (van) that was originally purchased for personal use you’ll need to establish the current market value of the asset. You cannot claim the full value of the asset unless it was purchased solely for use by your new business. A straightforward method to establish the value of a used asset is to research the second hand market – eBay is a simple way to do this.
Once you have determined the value of the asset, you need to prepare an invoice from yourself to your company listing the items and cost of each separately.
A simple invoice created using a word processor or spreadsheet will suffice, you just need to show on the invoice
your name
address
invoice to (your company)
invoice date
the items
their costs
If you have the original purchase receipts for the item, it is useful to attach them to your company records.
You can then transfer the money for the items on your invoice from your company account to your personal account.
Then finally you need to enter them into your bookkeeping screen. Click on the Enter new transaction then Asset purchase and enter the details. You will need to select zero-rated for the VAT category.
In the contract (your company with yourself) you can write an monthly rate your company has to pay to you(for example: £100). So, you don’t really need a loan account. The money, which goes from your business bank account to your private account, will be tagged to the supplier(you) - every month, until the van is paid off or sold. I hope it helps.
I’m not an accountant, so, to be 100% sure you may should seek professional advice.
Thanks for this .
Not wanted to company payment montly , like to setup this like loan to pay in future .
Can I make invoice for the van on my name and make director loan ?
Hi @robedywer,
In theory yes you can do this, if you wanted to check any implications it would be best to speak to an accountant