Selling a Truck that's in a company name

[Mikey360 68]

Evening all, bit of an odd one,

My brother has a truck (Ford ranger, 2014, 40K) that's in his companies name (bought second hand from ford commercial), he's just put a deposit down on a new ranger raptor (jammy git) and wants to shift his truck, he's asked if I want to sell it but I'm not sure I can because I'm not VAT registered with the whole commercial VAT on the truck and the fact its a company truck. 

How would he go about selling it? Does he have to pay the VAT on the value when sold or can he transfer it into his own name? 

[Nick M.K. 574]

9 minutes ago, Mikey360 said:

How would he go about selling it? Does he have to pay the VAT on the value when sold or can he transfer it into his own name? 

I will assume that his company was VAT Registered and that he recovered that VAT on the used van when he bought it. 

He now has to repay the VAT when he sells the truck so if he sells it to you for £4400 he has to pay back £733 of VAT inclusive in that price. It is exactly the same if he sells it to himself personally. It is depreciated very heavily I presume so his VAT liability will not be huge but he needs to keep a proper paper trail. 

 

Edited February 28, 2019 by Nick M.K.

[Mikey360 68]

5 minutes ago, Nick M.K. said:

I will assume that his company was VAT Registered and that he recovered that VAT on the used van when he bought it. 

He now has to repay the VAT when he sells the truck so if he sells it to you for £4400 he has to pay back £733 of VAT inclusive in that price. It is exactly the same if he sells it to himself personally. It is depreciated very heavily I presume so his VAT liability will not be huge but he needs to keep a proper paper trail. 

 

Great thanks Nick, his company is VAT registered, if he gifted it to himself, and then sold it to me, would that be allowed or a bit naughty?

 

Edited February 28, 2019 by Mikey360

[It's me 615]

5 minutes ago, Mikey360 said:

Great thanks Nick, his company is VAT registered, if he gifted it to himself, and then sold it to me, would that be allowed or a bit naughty?

 

he doesnt gift it he sells spares or repairs cambelt broke................... hence x££££££££££ s

tell him not to do this regularly though or he might get into a wee bit of trouble

[Mikey360 68]

4 minutes ago, boring dave said:

he doesnt gift it he sells spares or repairs cambelt broke................... hence x££££££££££ s

tell him not to do this regularly though or he might get into a wee bit of trouble

Just spoke to him and I think he's going to p/x it against the new raptor to avoid the headache!

[Mark101 536]

4 minutes ago, Mikey360 said:

Just spoke to him and I think he's going to p/x it against the new raptor to avoid the headache!

 

9 minutes ago, boring dave said:

he doesnt gift it he sells spares or repairs cambelt broke................... hence x££££££££££ s

tell him not to do this regularly though or he might get into a wee bit of trouble

Probably wise on this "open" forum

[Mikey360 68]

7 minutes ago, Mark101 said:

 

Probably wise on this "open" forum

Bugger thought this was in private! 

[trade vet 701]

2 hours ago, Mikey360 said:

Great thanks Nick, his company is VAT registered, if he gifted it to himself, and then sold it to me, would that be allowed or a bit naughty?

 

That would be a connected party transaction which has to be itemised in the annual accounts.Not a good idea incase anyone else thinks it is.