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Limited Company selling an asset to my company.

J

JohnJ

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Hey guys, apologies if this has been discussed previously but I'm new to this group and I am in need of some advice.

Long story short I have been a paying parent for my child Via bank transfer since my Ex partner and I split many years ago but up until recently she has decided to take me through CMS, I'm not looking to dodge CMS payments (Morally I can't, I believe the system is somewhat fair and what I pay seems very fair).

My question and concern is, I currently work fulltime for a company and I have just started my own limited company (side hustle) where I intend to rent out my vehicle for some extra income, with a plan to use profits to diversify my business with other services further down the line. I intend on selling my vehicle which I own outright to my company for arguments sake £10,000 (awaiting valuation for the vehicle at the moment) now as this is technically classed an out of pocket expense my company will repay me this over "X" amount of years or however long it takes really, tax free. Is this an extra £10,000 that my ex or CMS can take into consideration when calculating CMS payments? technically it's neither earned or unearned income?
 
Child maintenance service (CMS) calculates child maintenance based on a percentage of your gross weekly income, rather than a fixed amount. This means that any potential earnings you are expecting may not be taken into account until they are reflected in your tax records.
 
PunchingBag said:
Child maintenance service (CMS) calculates child maintenance based on a percentage of your gross weekly income, rather than a fixed amount. This means that any potential earnings you are expecting may not be taken into account until they are reflected in your tax records.
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Thanks for your reply. I understand that, I am confused as to whether that said £10,000 from my company into my own personal account will be taken into consideration as it's not taxable? As I am already in the system I don't want to find out that I will be in arrears in 1 or 2 years time.
 
If its not taxable income, it won't be taken into account. Your £10k is simply profit from a business deal, not income. As you've sold your own car - I assume as at a loss to its original purchase price, then CGT is not applicable either.

Where it might be taken into account is through notional income applied to certain non-income generating assets and cash - but these need to be over the value of £32k. However, this needs to be applied for by your ex and is not backdated.
 
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It seems it's not an income, it's an existing asset (car) which you are selling but in monthly payments (Loan) to your own company.
Sounds more like a tax matter because you are transferring your asset to your company and receiving asset value in monthly payments.
What if the company doesn't make any money and the car is a depreciating asset? Where is the income here? CMS is all about income, I think an accountant can help you understand properly.
 
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They usually get your income figures from the tax office and make the assessment based on that. So it will just be based on those figures.
 
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