Sole Trader ceasing to trade

C

carrs

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Hi there

I am filling out the ceasing to trade form with the revenue and it asks for assets of the business. If I have a van and the value is about E1500 will I have to pay for it?

Thanks
 
Carrs

As you are operating as a sole trader you own the van so do not need to pay it when you cease to trade. If you were operating as a company you would need to though
 
You may have a balancing charge or allowance if you claimed capital allowances (tax depreciation) on the van if the tax value is less or more than the market value.
 
Thanks for your advice. I looked into it a bit more and it looks like the value of the van is less than the value on the books (following depreciation). I think therefore that this will go down as a balancing charge thus a loss against the companies books.

Is this correct?

Thanks again.
 
If you were VAT registered and you had claimed VAT on the acquisition of the van you will have a vat liability on the value of the van when you cease to trade or de-register for VAT. Value of Van x 23/123.
 
Thanks for letting me know that. I have de-registered and they never mentioned anything about that.

Thanks though for telling me.
 
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