Thanks for your question - I am Sam and I am one of the UK tax experts on Just Answer.
Has your friend claimed the full capital allowances against his business profits or is there still a writing down allowance to claim? (I assume yes as you advsie AIA claimed)
How much is the van worth now
And the vans value now ?
You advised you claimed AIA which mans for tax purposes the van is worth ZERO as 100% of the value claiemd against profits in the year of purcahse, please clarify
I need the resale value of the van as if it were to be sold at market value
Thanks for your response
If you have claiemd AIA then the Book Value is ZERO not £5800 as there is no value for depreciation purposes so this has no relevance on the position at all.
Its the markwt value so
1) You need to add back in the balancing charge of £4700 plus VAT into the accounts and for the director (so standard rate 20% on top- total £5640
2) P11d prepared at year end for the value of the van £4700 Plus 20% VAT (£5640) which will be liable to tax on the employee (director) and Class 1 National Insurance on the company - so submitted with P11db
Then for VAT purposes you will show the output VAT as £940 against the sale of £4700
Let me know if I can assist further
Its an employment benefit - (that's why its recorded on form P11d) so liable to tax at year end when HMRC look at the salary (which must be paid dividends, and any other incomes) even if the total position of salary and benefits add to less than £8500