I'm new to this site but have a query that I can't seem to find the answer to. Firstly I will apologize in advance as I am not a qualified book-keeper but have been self taught and have been doing my husbands books for ever LOL.
My query is that my husband has recently bought a new van on HP, as far as I am aware I can claim the full cost as capital allowance (AIA) less interest (which I believe I claim as standard expense) but I have the following queries:-
a) is Class 4 NI calculated on normal nett profit (ie before capital allowance or with it included in final profit amount)
b) will the payment on account be calculated on normal nett profit ( " " " " " " " )
You are correct that you can claim the purchase price of the van as 100% AIA. The interest element of any loan payments can be claimed as an expense but not the full loan payment.
You can deduct the capital allowance/AIA and then Class 4 N I are calculated on the remaining net profit (current rate for 2015 - 2016 is 9% on anything over £8060 and 2% on excess over £42,385).
Personal allowance is deducted to give you the amount on which tax is due. When tax has been calculated, if the amount owing exceeds £1000 then you will pay the amount due for the year plus 50% of this amount (as prepayment for the following year) by 31 January and the remaining 50% by 31 July.
Hope this makes sense
Valerie
__________________
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.
my appologies for directly amending your signature but as you have given advice directly to a business rather than to another bookkeeper or accountant for your own safety I thought better to add a disclaimer to your post (which will now be for all of your posts). Please feel free to amend it to your own requirements.
Its just a safety net and if you really feel that you are happier without one then please feel free to remove it.
For any other readers reading this I would advise all professional bookkeepers and accountants to include a disclaimer in their signatures.
kindest regards,
Shaun.
__________________
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.
Also, assuming that it passes the van test, what is the unladen weight of the vehicle and will it be used only for work or also for personal use (work to home for vans does not count as personal use).
kindest regards,
Shaun.
__________________
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.
Of course I have no problem with you adding the disclaimer and appreciate your advice.
I will most certainly be keeping it there.
Best wishes
Valerie
__________________
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.
