Forum

• # 75158
• Wed 12 Oct 2011 09:14 AM

Hi

I was wondering if any one can help with a query. 

I work as an employee for a Ltd Company and the owner has a vehicle which he is looking to transfer to the business for a NBV of 1500.

He uses the vehicle 50% business and 50% personal.

Would you debit 1500 or 750 to the Vehicle fixed asset Account, I light of the fact that 50% of the vehicle is used is for business 

Also if the vehicle is sold depending on the NBV at the time, how would that be dealt with? 

It is something that I can not get my head round and would just like to know fro my own information

Many thanks Helen D

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• # 75219
• Thu 13 Oct 2011 01:13 PM

Hi Helen

The company would take the full value of the asset as in your example you would debit £1500.00 to vehicles on your balance sheet.

As their is personal use of the vehicle then they would have to put it through as a P11D benefit in kind.

Also they would need to look at the fuel element as if the don't make good the full value of the fuel based on the private mileage then they would also incur fuel benefit which is also a P11D item.

Kind regards
Stuart

Edited for Spelling

Edited at 13 Oct 2011 01:14 PM GMT

• Forum Moderator, South East & Greater London Regional Chairman
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• # 75223
• Thu 13 Oct 2011 01:27 PM

Hi Stuart

Thanks for your reply, if this was a self employed person how would they account for the personal use?

Thanks Helen

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