If I don't put my clients van thorough as an asset do I post the purchase price as equipment expensed? And when he sold the van how does that get posted?
I have just read other topics on this and have come to the conclusion it will be best to take off 20% for personal use on all van expenses that I have posted rather than put it thorugh as a fixed asset as I don't think it can be proved it is exclusively for business use.
Please could someone clarify that I am correct in my thinking. Thanks Jill
You could put the van as an asset on the BS, does he own it outright? You would not be able to put the van through as equipment expense. Does he have a BS?
Put through all motoring expenses for the year and then disallow the 20% on the SA return. Job done.
if its an asset, then you would have depreciation, but that gets added back for tax purposes on the SA, so really not an advantage to put the van as an asset if self employed - its a different matter for ltd co's.
I would just claim the motoring expenses unless there is a good reason to put it on the BS.
