While most SMEs these days go down the leasing route with their vehicles, there are still some businesses who have bought outright.
What happens when it’s time to sell them on?
It may be the vehicle has seen better days or there is a need to replace with a cleaner, more fuel-efficient and cost-effective model.
Whatever the reason, you need to be aware that there are usually tax implications, just like the sale of any other business assets.
First there is capital gains, or corporation tax. As a limited liability company — whenever you dispose of a business asset.
HMRC considers you to have disposed of a business asset whether you sell it, give it away as a gift or transfer it to another person, swap it for something else, get an insurance payout for it, or keep it but no longer use it for business purposes.
The tax man also requires you to factor in the number of capital allowances you claimed. As a limited liability company, your status may affect how much corporation tax you have to pay.
As a sole trader, doing this may increase your income tax bill.
Once you’ve unravelled the tax implications, what about actually selling the vehicle?
You can start by looking at online car-for-sale sites to see what the going rate is for your particular vehicle. Glass’s Guide will also tell you the value of your automobile.
Make sure the vehicle is in the best condition possible, take it through an MoT and make sure all the paperwork is in place including service history.
Give the car a good clean outside and a good valet inside.
If you are disposing of a fleet of vehicles then look for someone who can provide cost-effective and efficient remarketing provider who can manage the entire de-fleet process at a cost-effective price.
CD Auction Group, winner of this year’s Business Motoring Best Remarketing Service, for example provides a complete vehicle logistics service, an onsite bodyshop.
This take much of the pain away from preparing your vehicles as it can carry out fast and efficient repairs to vehicles before sale and valeting facilities to ensure vehicles are presented for sale in the best possible condition.
It also provides 24/7 cost-effective secure vehicle storage, vehicle inspection reports, vehicle body repairs, vehicle maintenance and vehicle valeting, always protecting the client’s investment.
Companies like this can also manage the hand over of existing company vehicles from one employee to another, allowing vehicles in life between drivers, to be inspected, safety checked, repaired as necessary and valeted prior to delivery to a new employee.
This enables an SME to be sure they are carrying out their duty of care to new employees allocated a company vehicle.
Outstanding logistics service – CD Auction Group’s access to a range of vehicle transporters, from single to multi-
vehicle configuration, offers a solution to clients and buyers who require vehicles to be transported between locations.
This ensures SME’s can move vehicles efficiently between locations and employees as required.