I seem to be finding a lot of information on the subject which is very confusing. I need to file Self Assessment for my husband shortly and I am struggling with recording the purchase of his van which is used solely for business. He bought it second hand and paid for it straight away. I should add that he bought it 2 months before he registered as self-employed.
From what I understand I can record it as a capital allowance and claim 100% of the AIA, am I right? It is the first year of trading, the van has been used solely for business and it has been paid for straight away.
Another issue that I have is that I have read somewhere that I need to put the actual value of the van and not the cost. How can I make this calculation?
In answer to your one question, when purchases are made before the start of a business then such are treated as though they were purchased on the first day of trading so don't worry about that part.
before we can answer the rest of your question though there is additional information that we need to know :
- Was the van purchased from a connected party? (as opposed to an arms length transaction, i.e. from a dealer)
- Is it really a van (confirm against this list) :
- What is the date of the start of the business (Month and year)?
Should be able to give you some advice once you've answered those few,
kind regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
