Looking at my client's account (soletrader) for the self assessment and have a question regarding the Hire Purchase.
A van was purchased on HP in 2007 and payment is being spread over 4 years.
Since taking over their account in April 10, i have entered the direct debit payments on a monthly basis into the HP nominal code and i have just received the HP agreement and their last self assessment return (submitted by their accountant who is no longer around).
I am using Sage instant & i am unsure what to enter as the fixed asset/Loan amount? There is nothing in the the self assessment form to suggest what the fixed asset value is after capital allowance as of April 10.
Do i simply need to calculate the amount left to pay over the remaining period and enter this as the fixed asset and loan amount?
Creditor: Loan (HP loan & 4 yrs Interest) - to be paid off by DDR until cleared,
Asset Cost of Van
PL 4 yrs interest - to be claimed as an expense
But in case this did not happen - You need to find out what the previous accountant did, as he may have already claimed all the interest (then again he may not have as not all accountants know that you can). Is there a reason you can't ask them how they treated the loan and the Van? Also the amount of Captial allowance allowed has varied a lot since 2007. AIA should have been 20% (unless the balance left was less than 1k, then the full amount could have been claimed) I can't see how you can guess how much may be left.
