Hi, I think I have this worked out but would just like someone to check for me please.
I read HMRC's pages on Annual Investment Allowance as it looks like I can claim 100% of the cash price of the Van as AIA in the year it was bought? is this correct?
Bought a work van on HP (100% business use)
Cash price
9850.00
HP Charge
1909.40
Fee
10.00
11769.40
Deposit paid 1,600
60 monthly payments of 169.49
What I think I need to do:
Annual investment allowance claim 9850.00
HP Charge 1909.40/60 = 31.82 - So I'll expense 31.82 of each 169.49 as it is paid
I think I mostly just needed to know that AIA could be claimed for the full amount even though it was bought on HP and is being paid off over several years
Sometimes the tax system can favour the client Its only WDA in a lump sum up front. Obviously when he sells the vehicle then a balancing charge would need to be made for the value at that time.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Yes, every case has to be treated on it's merit. For example new business bought a van 4 years ago and first year it didn't warrant claiming AIA (no profit) so I did it as WDA instead.
__________________
John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Its only WDA in a lump sum up front. Obviously when he sells the vehicle then a balancing charge would need to be made for the value at that time.
