Could someone please clarify for me if I put my clients van purchase through the books as an asset he can claim all motoring expenses on his SA and claim the purchases price as capital allowance on his SA aswell.
Why are Company vans classed as plant & machinery and not vehicles? One of my clients has just bought a new company van, used exclusively for business, and I have posted it to the vehicles account.
Hi pauline...good question. I've just checked and there is no specific definition of what plant and machinery and it seems to have been developed from case law. However a van is classed as P&M by hmrc whereas a car is not. I assume the rationale behind this is that a van is used solely for the purpose of carrying on a business otherwise we would all buy vans for our normal transport usage.
Having said that I don't think theer is a problem in posting a van to the vehicles account as it is a vehicle, the accountant will then set up the appropriate 'pool' with regards to capital allowances/AIA and claim any tax relief correctly.
Hi hopefully you'll be able to help on this subject: Hubby bought van Jan 04 with personal money Started self-employed business Apr 04 and uses van for business and pleasure (70/30) He's VAT registered so we use actual cost and proportion it accordingly My problem arises with AIA. As he didn't use business money the £3000 paid isn't in the accounts, so how do I claim 100% AIA on the van (or is this apportioned too?) If someone could show me with figures that would be appreciated, thanks
you cannot claim AIA as van bought in 04 and introduced into business during 04/05. Has he had accounts done for previous years? If so I would assume the prevailing capital allowance rates have been claimed and theer will be a pooled value from which further CAs can be claimed.
Sorry Rob I was having a very blonde moment when I typed 2004! It's an 04 van so maybe that's what I was thinking! Let's start again - he bought the van Jan 09, started the business Apr 09 so he's introduced the van into the business 09/10. Sorry about that!
my understanding is that you cannot claim AIA on assets previously owned in an earlier fiscal year and introduced into the business later, however you can claim capital allowances. Perhaps someone can corroborate as I am not totally positive. Otherwise second hand assets and assets used partly for private use can attract AIA (though you would need to make adjustment for personal use).
