Tradesman supplied figures for SA - states he had a poor year 09/10 and only had income of about £14 K (he is an experienced individual so eyebrows raised)
Still we all have bad years and he was off sick too for part of it....and he does get paid gross so he must be doing something right
However he went out and purchased van in late part of tax year (over 5K) so AIA will come into play
Now a lot of you ladies and gents have a lot more experience than me - so what I would like to know is how do you think those nice people at HMRC will see it..
Am I just being a little paranoid?
Motoring expenses around £1K if that helps in any way
I don't think those nice people at HMRC would be too bothered. The point BudgetB made about previous years is relevant, but like you said many people have suffered recently.
Presumably he was going to submit the same figures regardless of whether he bought a van or not.
Assuming he didn't pay cash when he had no savings, I can't see a problem. Rather good planning in fact - if his taxable income was £14k, it should all qualify for relief at 28% (IT 20%, NI 8%). If he claims CTC, will get additional 39% of van cost. If he didn't receive WTC before, it could qualify him to receive WTC.
All the above are dependant upon various other circumstances.
