SB Help required re ceasing self-employment

NOWSE

Is there anyone out there who can offer me a little advice?

For the past 5 years I have been a courier on a self-employed basis and I am VAT registered. I have got a new job and I will cease being self-employed and become PAYE. I'd like to some advice with regards to the tax implications regarding a van that I purchased new just over 2 years ago.

I bought the van with the help of a loan from a family member and the loan will have 4 more payments scheduled when I cease trading. Do I pay the outstanding payments or do I continue to make the payments after I cease trading?
Am I better to keep the van or sell it? If I do sell it should I wait until after I stop being self-employed?

Any advice would be gratefully received.

Savvy_Sue

I don't have any answers, I'm afraid, except to suggest that you phone the tax office you've dealt with for your self-employment and see what they say about ceasing to be self-employed. I know they can't tell you what the 'best' thing to do is, but they ought to be able to tell you what the tax implications are of doing one thing rather than another.

Hope someone who knows something about VAT will be along soon to be more help with that side of things!

NOWSE

I don't have any answers, I'm afraid, except to suggest that you phone the tax office you've dealt with for your self-employment and see what they say about ceasing to be self-employed. I know they can't tell you what the 'best' thing to do is, but they ought to be able to tell you what the tax implications are of doing one thing rather than another.

Hope someone who knows something about VAT will be along soon to be more help with that side of things!

Thanks for the suggestion but I don't really trust the Inland Revenue to give me an answer that would be best for me, rather than them. By the way have you ever rung the Inland Revenue? In my experience the quality of the information given over the phone has not been very good.

Savvy_Sue

All I can say is that I've found the local IR office unfailingly helpful when I've had queries relating to self-employment, ceasing self-employment and starting to employ people. And others would agree with me. I haven't had cause to contact them recently, and I'm sorry you haven't found them as helpful. I have heard that the VAT people are a lot scarier, mind you!

bridiej

For all the bad press they get the Inland Revenue are helpful, and fair.

Why not phone them, see what they say and then ask an accountant for a second opinion?