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Readers’ forum: Man with a van

15 September 2020
Issue: 4760 / Categories: Forum & Feedback
Tax treatment of undeclared business assets.

In 2003 my client bought a ‘van and a man’ delivery business for £40 000; £20 000 for goodwill and £20 000 for business assets. He operated as a sole trader for a year before incorporating in October 2004. He formed the company himself and paid £1 for one ordinary £1 share. I was then appointed to act for the company – not having acted for him previously. The client did not tell me about the original purchase so those assets were not included in the company accounts. During his sole trading not only was he paying drivers to operate his vans he was also paying other drivers to transport goods using their own vans. In the intervening years he has continued to operate in the same way buying and selling his vans for use in the business and subcontracting work to drivers with their own...

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