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Going Permanent and Liquidating my LTD - Selling Assets?

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    Going Permanent and Liquidating my LTD - Selling Assets?

    Dear All,

    Like many, the IR35 reform and now Covid19 has changed the battlefield for me a bit and a very interesting permanent role came up. After a series of interviews, I have been offered the job which I have accepted. MVLOnline have a good reputation on here for liquidating a Ltd Company, so had a look at their site to see what the process looks like and saw the checklist of things I need to do before their involvement, one of which was to sell assets.

    The company has numerous assets all of which I would want to keep as most of it makes up my home office such as computer hardware (laptop, Screen, Docking Station etc), Desk and other items. As I'm the buyer and the seller, how do I go about valuing said items or as they are low value, nobody really cares?

    Thanks.

    #2
    Originally posted by DKB View Post
    As I'm the buyer and the seller, how do I go about valuing said items or as they are low value, nobody really cares?
    You are not the buyer and seller. The company is the seller and you are the buyer. An important distinction.

    There are standard accountings rules for this, relating to depreciation and current value, so definitely speak to your accountant. Those assets should have a value on your last balance sheet.

    If they are of low value, then your accountant may advise you that you're safe to just keep them.

    But for example, if your company buys a laptop just before you liquidate, it is clearly wrong for you (personally) to take ownership of that for nothing. However, if that laptop is more than 3 years old, it will have negligible (accounting) value and could perhaps be written off from the company's perspective.
    Last edited by Paralytic; 7 May 2020, 13:27.

    Comment


      #3
      Originally posted by Paralytic View Post
      You are not the buyer and seller. The company is the seller and you are the buyer. An important distinction.

      There are standard accountings rules for this, relating to depreciation and current value, so definitely speak to your accountant. Those assets should have a value on your last balance sheet.

      If they are of low value, then your accountant may advise you that you're safe to just keep them.

      But for example, if your company buys a laptop just before you liquidate, it is clearly wrong for you (personally) to take ownership of that for nothing. However, if that laptop is more than 3 years old, it will have negligible (accounting) value and could perhaps be written off from the company's perspective.
      Good point and well corrected! That's ultimately what I mean, a company under my control selling to me as an individual, but yes, two different things. I bought a new desk recently (in the last month), so while it's low value, it's still new so that was one of the main things that got me thinking as that will have value whereas my laptop will be fairly worthless.

      I'll let the accountants know my intentions and get the ball rolling.

      Thanks.

      Comment


        #4
        The computer equipment would have been written off in the first year, in the tax computation.

        I'd suggest that they be written down to zero in the books and then the sale value is zero

        IANYA
        I was an IPSE Consultative Council Member, until the BoD abolished it. I am not an IPSE Member, since they have no longer have any relevance to me, as an IT Contractor. Read my lips...I recommend QDOS for ALL your Insurance requirements (Contact me for a referral code).

        Comment


          #5
          Originally posted by Scruff View Post
          The computer equipment would have been written off in the first year, in the tax computation.

          I'd suggest that they be written down to zero in the books and then the sale value is zero

          IANYA
          Oops double post.
          Last edited by northernladuk; 7 May 2020, 21:31.
          'CUK forum personality of 2011 - Winner - Yes really!!!!

          Comment


            #6
            Originally posted by Scruff View Post
            The computer equipment would have been written off in the first year, in the tax computation.

            I'd suggest that they be written down to zero in the books and then the sale value is zero

            IANYA
            I find it hard to believe HMRC will be happy with you claiming a high end laptop is worth nothing after a year.
            'CUK forum personality of 2011 - Winner - Yes really!!!!

            Comment


              #7
              Depends on the initial cost. Under £1k, no question about it.
              I was an IPSE Consultative Council Member, until the BoD abolished it. I am not an IPSE Member, since they have no longer have any relevance to me, as an IT Contractor. Read my lips...I recommend QDOS for ALL your Insurance requirements (Contact me for a referral code).

              Comment


                #8
                Originally posted by northernladuk View Post
                I find it hard to believe HMRC will be happy with you claiming a high end laptop is worth nothing after a year.
                Up to a limit of ₤1000 you can account for items simply as an expense rather than a fixed asset to be included in the balance sheet.
                I'm alright Jack

                Comment


                  #9
                  Originally posted by BlasterBates View Post
                  Up to a limit of ₤1000 you can account for items simply as an expense rather than a fixed asset to be included in the balance sheet.
                  You say that but all three of my accountants moved anything over 500 in to asset. Couldn't comment on the depreciation time but I've a feeling for somethings it was for more than year as well but can't remember.
                  'CUK forum personality of 2011 - Winner - Yes really!!!!

                  Comment


                    #10
                    Originally posted by northernladuk View Post
                    You say that but all three of my accountants moved anything over 500 in to asset. Couldn't comment on the depreciation time but I've a feeling for somethings it was for more than year as well but can't remember.
                    Perhaps was too quick with my look up, I always define them as assets
                    I'm alright Jack

                    Comment

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