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28 January 2020
Personal borrowings to buy business plant and machinery.
I am encountering various instances when company directors are obtaining finance personally and then using the funds to buy machinery and vans for their company’s use. This is because they are unable to obtain finance through their company. The assets are used 100% for company business use.
Sometimes in such cases the directors arrange for the monthly payments to be paid by the company. Alternatively some make the payments personally.
My questions are as follows.
- Can the company reclaim the VAT on the purchase of an asset?
- Can the company claim capital allowances on the plant or machinery?
I hope that Taxation readers can answer these points. For the future is there any particular way or best approach that should be used in such situations to avoid tax problems?
I should be grateful for replies....
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