Appropriate value for company laptop to sell to myself as part of a liquidation (MVL)

[Scoooby]

Hello,

I'm looking to go down the MVL route and my company has a laptop bought just under 3 years ago (2 years and 8 months to be precise) for £830 (Dell Inspiron 15 5000).

It's in excellent condition, but just wondering what is an appropriate amount to sell this to myself in order to dispose of this company asset ahead of an MVL?

I looked on ebay, but there's a big variation of prices and probably focused more towards newer used laptops.

I'd be interested to hear how others priced their used laptops (or other assets) in a similar situation.

Thanks

[Lance]

Hello,

I'm looking to go down the MVL route and my company has a laptop bought just under 3 years ago (2 years and 8 months to be precise) for £830 (Dell Inspiron 15 5000).

It's in excellent condition, but just wondering what is an appropriate amount to sell this to myself in order to dispose of this company asset ahead of an MVL?

I looked on ebay, but there's a big variation of prices and probably focused more towards newer used laptops.

I'd be interested to hear how others priced their used laptops (or other assets) in a similar situation.

Thanks

Talk to your accountant. But I'd be looking to wait 4 months, write it off as worth nothing, then "dispose" of it

[ladymuck]

Is it recorded as an asset in your books? Straight line deprection over three years would leave you with NBV of £92.08. You could sell it to yourself for that or, wait until the three years are up and write off the asset as it'll have zero value.

Profit on asset disposal will need to go onto your CT return so, for the sake of such a low value item, you do need to ask yourself wether it's worth paying yourCo the cash, calculating the tax on the gain and then pay yourself back the proceeds when you take the final distribution?

If you didn't record the item as an asset then there's really no accounting to be done as you've processed the cost as an overhead not a capital expense.

[Scoooby]

Thanks for the suggestions.

Given the small amounts, it's not worth keeping the company open for another 4 months and having to pay my accountants fees that bit longer.

I'm also keen to get the ball rolling on the MVL given the delays at HMRC. Ideally want to get everything completed before the start of the new tax year before any potential changes to CGT and/or ER.

[WTFH]

... having to pay my accountants fees that bit longer.

When does your accountancy fee year end?

[Scoooby]

When does your accountancy fee year end?

I know I'll need to pay for the full 12 months year end accounts regardless (currently split monthly), but there is on ongoing additional support charge as well, which would end sooner if I close the company sooner.

[eek]

Is it recorded as an asset in your books? Straight line deprection over three years would leave you with NBV of £92.08. You could sell it to yourself for that or, wait until the three years are up and write off the asset as it'll have zero value.

Profit on asset disposal will need to go onto your CT return so, for the sake of such a low value item, you do need to ask yourself wether it's worth paying yourCo the cash, calculating the tax on the gain and then pay yourself back the proceeds when you take the final distribution?

If you didn't record the item as an asset then there's really no accounting to be done as you've processed the cost as an overhead not a capital expense.

Or just pay the company £92.08 and be done with it?

[Scruff]

Write it off to £0. Nothing of any value when the screen has broken.

[Scoooby]

Or just pay the company £92.08 and be done with it?

The laptop is recorded as an asset on my company books.

Would it be better to make this payment personally to the company before the company ceases to trade and final accounts are prepared, in order to officially dispose of this asset, prior to progressing a liquidation?

Or could/should this be done after? Not sure if it matters.

[northernladuk]

The laptop is recorded as an asset on my company books.

Would it be better to make this payment personally to the company before the company ceases to trade and final accounts are prepared, in order to officially dispose of this asset, prior to progressing a liquidation?

Or could/should this be done after? Not sure if it matters.

Just pay for it and clear it up. No reason to go in to the liqudidation with any needless complexities open.