Retiring Director taking Co vehicles

[Mack2009]

One of our Directors is on the verge of retiring, he is thinking of taking his company vehicles out (one a car and the other a van).

The car has been valued at £8500 and the van £1600. If he takes these out what are the tax/ni implications? I had a quick look in HMRC website and it looks like he pays NI on them, I assume the company will too?

What are the accounting enteries do I credit fixed assets with the values above, debit "NI & other benefits" or the like and account for any loss on sale etc as a normal sale?

Plus we would need to account for output VAT within the £1600?

Any advice gratefully received.

Thanks

[pawncob]

There are only NI considerations if he takes them as a benefit. If he's got a DLA, let him pay for them and save tax/NICs.
VAT due on £1600 (£266) and Profit/Loss calculated on both items as usual.

[Generix]

One of our Directors is on the verge of retiring, he is thinking of taking his company vehicles out (one a car and the other a van).

The car has been valued at £8500 and the van £1600. If he takes these out what are the tax/ni implications? I had a quick look in HMRC website and it looks like he pays NI on them, I assume the company will too?

What are the accounting enteries do I credit fixed assets with the values above, debit "NI & other benefits" or the like and account for any loss on sale etc as a normal sale?

Plus we would need to account for output VAT within the £1600?

Any advice gratefully received.

Thanks

You should also check whether or not you recovered VAT on the car...unlikely granted... but if you did you should either make an adjustment to cancel that VAT recovery (as it probably shouldn't have been recovered) or alternatively make sure you account for the output VAT on that supply also. Also check whether the VAT was charged back to the cost to be depreciated on this, i.e. that the asset value is correct.

Re the van yes, VAT was likely recovered therefore, output VAT payable on any sale (or gift).