Moving Assets to Limited Company

[Jeewhizz]

Now, I have a good accountant, and could well ask him, but thought this might help other people too.

I am currently self employed, and have two computers I use for work. However, these weren't purchased with company funds, but were given as part of a termination package at my last job. As such, they are covered under my house hold insurance policy.

I am going Ltd over the next few weeks, and my accountant has mentioned briefly that all assets get moved over. Should I move the computers over? If I do this, I'm assuming that I lose the house hold insurance cover, and so will have to look into additional insurance for the business. Am I right in my thinking?

Is it worth me moving them over? Would it be better to keep them as personal assets? What are the benefits of moving them to the LTD?

The only other thing that might throw a spanner in the works is that I have got some software on here that has gone through the SE books - software needed for the purposes of work that is - no games etc

Thoughts?

[Fuzzy]

Any accountants in the house ?

[JohnG]

Not an accountant, merely a bookkeeper (amongst my many other talents...).

As a general rule never put any assets into a limited company. In this case I'd keep the computers as your personal property. Having said that if you wanted to spend any money on them for some reason you then couldn't put that thro the ltd co.

I suppose you could rent them out to the ltd co in some way though whether the tax man would wear that I couldn't say (ask your accountant). As second hand computers are not worth much in accounting terms it probably wouldn't make a lot of difference either way in fact.

Hope this is not too confusing (confused myself writing it at first...).

[RayB]

Elaine is the resident accountant - but I think she's on holiday. Sandra (Boxby) is also a qualified accountant - but her pitch is today I think

[elainec100]

sorry just back from my hols.

I think the answer here would be 'depends' - best off discussing your personal circs with your accountant. That is what you pay him / her for.

[Jeewhizz]

Hi Elaine,

Thanks for this. In the end, after discussing, we've decided to leave the equipment outside of the Ltd company. All new equipment will obviously be purchased within the Ltd company, as and when required!

[elainec100]

Hi Khalid

Glad you got it sorted out.