Ltd company in liquidation - can they take my car?

[southgate]

As title, My father's business going into liquidation, my car is registered on the V5 to me at home address, but under the business name also (for insurance purposes).

I am not a director of the business and the car was bought with my own money and used as personal transport etc. Is my car safe?

[Chris_w666]

Is it insured by the business or owned by it? Your OP wasn't clear.

[touching cloth]

It won't matter what is on the V5 I wouldn't have thought, it will be down to whether the car is listed as an asset of the business on the company accounts. If you paid for it with your own money then it shouldn't be so nothing to worry about.

[joreco]

As has previously been posted, if the vehicle is not shown on the companies accounts as an asset, then you will have no problems at all. Again, as has already been mentioned, the V5 really has no bearing on the legal owner, which works both ways when we have to collect an asset of a company and the car is registered in a personal name.................the car has to go.

It would however and I am sure its in hand (?) to get the V5 back into your sole name sooner than later.

[southgate]

Car is insured on the company's insurance policy, not listed as a company asset.

If I got a definite "you're going to be fine", I wasn't going to change the V5 as it makes the car look like its had more owners. Of course, if there is any doubt, I will change it immediately!

[Jasandjules]

I should imagine the question is who is the legal owner of the car. You, or the company.

You say you bought the car with your money and it is not listed as a company car..................... So I can't see how they could legitimately take it on the basis of what you ahve said.

[grumbledoak]

Don't mistake my advice for that of a real accountant, but there must be some implications if the company are paying your personal car insurance. Hopefully only as 'benefit in kind' stuff. I'd make damn sure the ownership was legally clear.

[AyBee]

grumbledoak said:

Don't mistake my advice for that of a real accountant, but there must be some implications if the company are paying your personal car insurance. Hopefully only as 'benefit in kind' stuff. I'd make damn sure the ownership was legally clear.

I imagine it's probably a trade policy to allow employees, family to use all the cars? Seems to be a standard thing with farmers in my experience, not sure how it's dealt with for tax purposes though, even if the family member isn't involved in the business....

[singlecoil]

It would suggest that the company had an 'insurable interest' in the car, though. That's often the same thing as owning it.

[Eric Mc]

I wouldn't worry too much. It does sound that "legal title" to the car is with you and not the company.

If the company has taken out insurance so that the car can be driven on company business, that is totally irrelevant and will not bring the car into any sort of company ownership. There are many businesses which take out such policies for their employees, as most normal motoring insurance poliocies taken out by individuals do not cover them for driving on business or employment related trips.

When is the last time you heard of an employee's car being seized by a liquidator?

[joreco]

southgate said:

Car is insured on the company's insurance policy, not listed as a company asset.

If I got a definite "you're going to be fine", I wasn't going to change the V5 as it makes the car look like its had more owners. Of course, if there is any doubt, I will change it immediately!

As far as the car goes, you are fine.

I would presume, if the car is insured through the said company which is in (or soon to be) liquidation, you will be having to insure the car through a different route, as the insurance will be cancelled when that happens. If you are worried about number of keepers, just send the V5 back to DVLA and add your name to company details and on return, return to DVLA and remove company details, you should not add anymore keepers, but its a faf and not always runs to plan! You could always keep copies of the paperwork and as address will be same etc, new buyers would understand, as happens when Director leaves from company and takes original company car as package payment or similar.

One thing to remember, whilst the V5 in not a legal owner, signing on behalf of a limited company with no authority is against the law, therefore if you kept the vehicle in the company name, it could all get messy later on, as your dad would have no authority either as soon as admin/liquidator takes over.

But 100% the car is safe, if its not shown on any company books.

Edited by joreco on Sunday 21st February 09:13

[Jasandjules]

singlecoil said:

It would suggest that the company had an 'insurable interest' in the car, though. That's often the same thing as owning it.

I disagree.

That would be like saying if my mum paid the insurance on my car when I was 18 and I wrote it off, they would give her the money. Or let's say I hire a car for a week, and I am required to take out an insurance policy. If I write off the car, do they give me the money?

Legal Title is legal title, that may be different from the RK or the insurer.

[ClassicMercs]

I think we can all agree the car should be safe - if registered and paid for by your own money.

Only one other poster has pointed out the next step - get some new insurance sorted, or make sure the car is off the road. The existing policy may now be invalid, especially given the circumstances.

[singlecoil]

Jasandjules said:

singlecoil said:

It would suggest that the company had an 'insurable interest' in the car, though. That's often the same thing as owning it.

I disagree.

That would be like saying if my mum paid the insurance on my car when I was 18 and I wrote it off, they would give her the money. Or let's say I hire a car for a week, and I am required to take out an insurance policy. If I write off the car, do they give me the money?

Legal Title is legal title, that may be different from the RK or the insurer.

I didn't say it proved that the company owned it.

[Eric Mc]

The implication was that it could be caught up in the gathering together of company assets for sale to satisfy the company creditors - which is almost definitely NOT the case.

[singlecoil]

Why was the company shown on the V5 in the first place? An explanation has been given for them insuring it, (I assume the car was used on compnay business, although I don't think the OP has actually said as much) but why did the company need to be on the V5?

[Eric Mc]

That's a valid question - but the V5 only indicates registered keeper, as opposed to legal owner.

Edited by Eric Mc on Sunday 21st February 17:43

[singlecoil]

Eric Mc said:

That's a valid question - but the V5 only indicates registered keeper, as opposed to legal owner.

Indeed, which I why I'm wondering why the company is shown on it at all. I understood that the V5 had to show the registered keeper, and this, presumably, is the OP.

[ShadownINja]

Um... how do you prove you legally own a car, then?

[southgate]

singlecoil said:

Why was the company shown on the V5 in the first place? An explanation has been given for them insuring it, (I assume the car was used on compnay business, although I don't think the OP has actually said as much) but why did the company need to be on the V5?

I was advised by my father to do so. TBH I'm not sure he got this right. I think his suggestion was to make taxing the car easier. If the policy cover note showed the same company name as the V5, then the (not so knowledgable) person at the Post Office would hand over the tax disc more easily! Nothing dodgey there, just that none of the cover notes we ever had showed vehicle details!