Company purchasing personal items

[Over Clocker]

Hi guys,

Have recently set up my own ltd company.
I'm fine with the normal payroll stuff.
I was just wondering if anyone knows the process of the following.

I want to sell my personal PC, desk, chair etc to my company. Just wondering about rules on what it is worth etc etc. Also, how do I actually do it, just write myself a cheque and put it down in the company books as a purchase, or is there a lot more to it?

Thanks,

Mal

 

[_Jimlad_]

Hi guys,

Have recently set up my own ltd company.
I'm fine with the normal payroll stuff.
I was just wondering if anyone knows the process of the following.

I want to sell my personal PC, desk, chair etc to my company. Just wondering about rules on what it is worth etc etc. Also, how do I actually do it, just write myself a cheque and put it down in the company books as a purchase, or is there a lot more to it?

Thanks,

Mal

hmmm, not sure how it works, but might look better if you 'gave' the stuff to a mate and put it in the books under his name.... not that i would know!

 

[Over Clocker]

hmmm, not sure how it works, but might look better if you 'gave' the stuff to a mate and put it in the books under his name.... not that i would know!

Nah I know it's fine to purchase your old personal stuff, just not sure how to do it!

Mal

 

[Spie]

You can do it, but it must be a fair price. If you then continue to use it personally, there will be a benefit in kind which is taxable.

 

[_Jimlad_]

You can do it, but it must be a fair price. If you then continue to use it personally, there will be a benefit in kind which is taxable.

yeah this is the man you want to talk to!

 

[Over Clocker]

You can do it, but it must be a fair price. If you then continue to use it personally, there will be a benefit in kind which is taxable.

Thanks Mark,

Yep would be a fair price. I was wondering about the process of doing it, what paperwork etc?

Thanks,

Mal

 

[Spie]

Just create an invoice from you personally to the company. That's it

 

[Over Clocker]

Thanks very much Mark,

Great help

Mal

 

[Raymond Lin]

There are rules governing this, the correct term is substantial property transaction. If a director in his personal capacity is buying something from or selling something to the company, then prior consent of the members by ordinary resolution is necessary if the asset being bought or sold is of requisite value. Company's Act 1985 Section 320.

If the asset is worth more than £100,000, it will always be substantial property transaction (SPT), if its betten £2,000 to £100,000 then it'll qualify as being of requisiet value if it is worth more than 10% of the company's net relevant assets (the net assets figure shown on the latest set of accounts or, if no accounts have been prepared, the amount of the company's called up share capital).

ok...may be gone OTT.........meh.