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Sleighed

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22 January 2013
Issue: 4387 / Categories: Forum & Feedback
A self-employed individual delivers toys. He receives little cash payment, but the toy manufacturer for whom he carries out this work provides a sleigh and reindeer. How is this to be treated in the accounts?

We act on behalf of an elderly gentleman who delivers toys on a self-employed basis. He is paid very little for this but the toy manufacturer for whom he carries out this work does provide him with a sleigh and some reindeer to pull it.

The toy manufacturer insures the vehicle and reindeer and pays for the regular services and repairs. All our client basically has to do is feed the reindeer.

The manufacturer has from time to time suggested that they would be happy to replace the sleigh with a van but to continue the same basic conditions (they pay tax insurance and repairs and the client pays for the fuel) but our client is a traditionalist and seems happy to stick to the present arrangement.

Our question is how we should treat the sleigh (or van as it could conceivably be in future) in our client’s...

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