Driving Instructor - Car AIA

Driving Instructor - Car AIA

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Hello

Driving Instructor.

Year runs 06.04.08 to 05.04.09.

On 1st January 2009 buys Instructor Car with dual controls etc. So I assume AIA can be claimed as it is in line with (Bourne v Auto School of Motoring (Norwich) Ltd 42TC217);

Is that right?

Secondly, do I have to apportion for the time;

ie Cost of instructor car £15000. AIA £15000.

Do i then have to apportion 3/12ths? (Jan Feb Mar)? Or is it as straight forward as 100%? And can I restrict this if I want to? I assume so.

Thanks very much.

Dave

Replies (8)

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Rebecca Benneyworth profile image
By Rebecca Benneyworth
02nd Nov 2009 01:43

Yes, I think so

Although we have new rules for capital allowances (they don't affect your purchase in any case as it was too early) I am pretty sure that the Bourne case is still valid as interpretation of "not a car". The new legislation merely repeats the old definition in S81 CAA 2001 with an addition, so I would exepct it to still apply.

Not withstanding that, you are on old rules so  AIA yes - "not a car" so OK. Private use adjustment will be necessary if you have any private use and no don't time apportion the £50,000 unless you have a three month accounting period - yours is a year so you would have £50,000 available even if the "not car" was bought on the last day of the AP.

And yes, partial claim is fine, but the balance only gets WDA next year. (at 20%)

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By User deleted
02nd Nov 2009 08:17

Get a life guys

Looking at A Web at 2.41 am ! and its not even January. How awfully sad.

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By DMGbus
02nd Nov 2009 08:47

Tax Credits not to be overlooked

Before considering disallowing some of the AIA consider the effect on Working Tax Credits.

One-off large capital expenditure of this amount can create a tax credits entitlement for TWO tax years, so disallowing CAs could save one lot of IT / Class 4 NIC but reduce tax credits for two years.

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By zarathustra
02nd Nov 2009 09:23

BIK ?
Am I correct in saying that if this was a company, there would be no BIK ?

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By User deleted
02nd Nov 2009 10:38

dunno whats more worrying..

Dave posting this at 02.41 or Rebecca answering it 2 minutes later...is there something we should be told..??

Good question with the company BIK...I'd always assumed that other tax concessions notwithstanding that if available for private use then normal rules would apply and hence always apply AMR to mileage that usually works out better anyway...

pembo

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By User deleted
02nd Nov 2009 11:11

awesome

 That's ace! Thanks so much for the replies.

It's funny! I was thinking "fancy replying at 2;43 but realised it was only 1;43 actually (Aweb not changed clocks i think) then thought - hang on, I posted it at 1;41!! It's a concerted effort to not have a nightmare january. So I am doing one Sunday every other week and have a set amount of work to finish regardless. That way, I am tired only twice a month rather than all through December January. And I'm off for a month in the canaries in 2 weeks time, so want to get ahead.

You are right though. I did feel a bit sad doing it. But I absolutely LOVE Rebecca.

Hey, unless she is in some balmy foreign island and it was only 3pm local. Or if the tax man is reading this, she was in Norwich after a very quiet working week and really had no work to do at all. haha!

Thanks Rebecca. 

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Rebecca Benneyworth profile image
By Rebecca Benneyworth
03rd Nov 2009 01:09

OK sadly I'm here again!

Last night my excuse was I was putting the finishing touches to Monday's tax wire at about 12 when I got (for the first time ever) the blue screen of death!! Lost everything and it took me 2 hours to get back to "almost finished" where I was at midnight. I was doing the tax wire at that time of night because I spent my weekend acting on a murder weekend for Joy Swift (absolutely stunning weekend - most sleuths thought I was the murderer - how wrong were they!!) so had no time at home to finish off. While the "back end" systems were re- booting I wandered around the site (OK that might be a little sad!)

Tonight? Well a bit worrying that I'm here again at allegedly 2.14 which is really 1.14 and therefore not really THAT LATE(!?) But have been out for dinner and thought I would just see what's going on and that was an hour ago. OK so NOW I'm officially sad....

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By Rishi13
18th Sep 2010 16:27

anaother question on AIA for driving school

I am sad as well- working on a Saturday afternoon.  I assume that car with dual control purchased in October 2009 for year ending 31/05/2010 would qualify for 100% AIA.

 

 

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