Tax return advice for van purchase

Tax return advice for van purchase

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Hello,

I completing my 2015-16 tax return and looking for some advice regarding the purchase of a van.  

I am self employed and bought a van for approximately £10k during the tax year, then soon afterwards had and accident and broke my hip. I was therefore unable to work for much of the year and consequently my income did not reach my personal tax allowance.   Therefore If I include the van purchase on the tax return using AIA I will not benefit from the capital allowance.   Is there a way to more effectively use this capital expenditure in subsequent tax years? For example could the van be written down over several years?

Many thanks for any advise, Neil

Replies (11)

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RLI
By lionofludesch
22nd Jan 2017 18:05

Yes - you don't have to claim AIA or you can make a partial claim.

The balance is carried forward and can be claimed at 18% of the balance remaining at the beginning of each year.

Thanks (3)
Replying to lionofludesch:
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By Neil1
22nd Jan 2017 19:36

Thanks for your advice and speedy reply.
Can I simply choose how much of the £10k purchase price to claim using AIA in the first year or is there a calculation to work out the figure?

Thanks again, Neil

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Replying to Neil1:
By Ruddles
22nd Jan 2017 19:49

Don't push it. You're starting to ask for advice that most clients pay for.

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Replying to Ruddles:
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By Neil1
22nd Jan 2017 19:53

Fair enough, I'm new to this, so sorry if I overstepped the mark.

Kind regards

Neil

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Replying to Neil1:
By Ruddles
22nd Jan 2017 19:56

Since you've been much more polite than most, the answer is that you can claim as little or as much as you want. Remember to restrict whatever you claim for private use (if any).

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By Neil1
22nd Jan 2017 20:22

Thanks for your help Ruddles, much appreciated

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By Tim Vane
22nd Jan 2017 23:13

+1 to the OP for being polite, honest and grateful.

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By possep
23rd Jan 2017 12:35

I would suggest that you seek some advice regarding your expenses as you may have HP on the van that you are not claiming, or claiming incorrectly. The queries you originally made have made me suspect that you could be missing something and a small firm of accountants could provide their services cheaply for a sole trader.

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Replying to possep:
abc
By Kim Jong Un's Hair
23rd Jan 2017 12:42

Thanks, Peter.

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Replying to Kim Jong Un's Hair:
By JCresswellTax
23rd Jan 2017 14:10

Kim Jong Un's Hair wrote:

Thanks, Peter.

Who are you thanking...and for what?

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Replying to JCresswellTax:
By Ruddles
23rd Jan 2017 14:15

I suspect just having a bit of fun having discovered how to find users' real names :)

Seriously, though, it is something that AW need to deal with as a matter of urgency.

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