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Advice required please

  • Member
  • Practice Licence
  • 77 posts
  • # 81122

Looking for a little advice regarding the purchase of a sat nav....

My client runs a dog grooming business.  When he started he also included dog walking.  This meant travelling to peoples homes to walk their dog.  He bought a sat nav to make life easier to find the locations.

But he is not claiming for mileage or car useage as he never kept a record of miles and the dog walking side of it was not bringing in enough money to continue.  So it only happened a few times.

 I wasn't sure if I could therefore put through the sat nav purchase, as he wasn't claiming and wasn't using the car for work.

 However, he now has a second business which is doing parties at peoples homes.  So now needs the sat nav.

 As a genuine purchase for the Dog business I decided to record the purchase and have the new second business buy it off the Dog business.  All okay so far....

 But... he has had a huge domestic at home and is now homeless.  His partner has kept the sat nav!

 

1) What do I do about the sat nav in the books.  Can I record it, or shall I just have to delete this one?

2) How does this effect MLR?  I have copy of his driving licence and bank statements, all okay for original address.  But now until he finds a new home he is in limbo land.  Plus he has to put his business on hold as he run that from home.  Its all a bit messy!

Appreciate input from other members

Many Thanks

Paula

  • Member
  • Practice Licence
  • 106 posts
  • # 81131

Hi Paula

How would you account for the SatNav if it stopped working or was lost, and your client purchased a new one? I don't see this as being any different. I'm guessing you have shown it as a business asset, and knowing the cost I can't see depreciation being an issue. Put it through the books, and do likewise if he buys a second.

Alternatively, has he reported it to the police and his insurance company as a theft? That could be a different matter.

With regard MLR, I don't see that there is an issue: Do you telephone all of your clients on a daily/weekly/monthly basis to see if they have moved premises/address? As long as you have complied with the regulations all should be OK; just tell him to notify you of his new address, when he has one.

  • Member
  • Practice Licence
  • 77 posts
  • # 81180

Thank you very much Wilbur, I appreciate the advice,

I recorded the sat nav as an Expense rather than Asset as the cost was reasonably small at £90

Kind Regards

Paula       

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