Company Car in Own Name

[mrsmarple]

Hi guys

Can you help me please? We bough a car for one of our managers and put it in the name of the manager as he wanted to keep his no claims (I know, I know). He is now leaving...could there be a problem getting it back if he wanted to be problematic? It is all friendly....but I know issues can develop.

We have always paid for everything - services, repairs and so on and petrol - and have proof of that of course. Just a bit worried! Thanks so much for any help.

[des8]

Re: Company Car in Own Name

Hi and wwlcome.
How did you pay for the vehicle (company cheque?) and was the invoice in the company name, or the managers?

When you say"put it in the name of xxc" do you mean it is registered in his name as the keeper?
If so that is not proof of ownership

[mrsmarple]

Re: Company Car in Own Name

Hello Des8 and thank you for replying!

We transferred money into his account and then he bought the car. We have since serviced and paid for extensive repairs for the car....all of which is documented. But the fact remains the car is in his name and the invoice was in his name. Thank you for any further help you can give.....

[des8]

Re: Company Car in Own Name

Presumably thereis a paper trial regarding the transfer of money into his account eg deposit slips, money going from your business account.
I assume you didn't just give him an envelope stuffed with fivers.

Have you no paperwork confirming you transferred money to enable him purchase the vehicle?

[wales01man]

Re: Company Car in Own Name

The money must have gone through the books as a loan or a purchase how was this recorded?

[mrsmarple]

Re: Company Car in Own Name

It was recorded as a company car purchase through the books - does that help us?

[wales01man]

Re: Company Car in Own Name

If its through the books is there a VAT receipt as you can reclaim some of the VAT on a car purchase I cannot see that your accountant would allow an expense without a receipt ?

[des8]

Re: Company Car in Own Name

To go back to the original question, IMO there should be no problem regaining possession of the vehicle if your ex employee tries to retain it.
You seem to have have sufficient evidence to prove in a court that it was a company financed purchase.

[mrsmarple]

Re: Company Car in Own Name

Thank you SO much Des8....I really appreciate your help...