Hi guys and gals. AIA explained for new starter

Hi guys and gals. AIA explained for new starter

Didn't find your answer?

So basically i would really like to know how AIA would work me (if it even does) if I were to buy a new van for around 15k how much would I get back? I would plan to use this for tools also as I understand they are eligible, around 3-4k. Also would it work for second hand vehicles.

Basically I have been trying to read as much as I can to understand various taxes, incentives, schemes etc but now I'm very confused and if I'm honest slightly daunted by the whole thing. Is there any literature out there, some sort of book/textbook, I could buy that you guys would recommend to help me get to grips with it all. I'm a plumber if that's important at all?!

I really do appreciate this thanks v much in advance

Replies (7)

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By Duhamel
11th Jul 2014 23:08

Get what back?

AIA acts as a deduction against your profit, it doesn't give you anything back on its own. It applies to plant and machinery, so your van and tools count but a car won't.

Any personal use of the van will also be taken into account, if you are a sole trader. If you trade through a company then personal use has other implications.

 

I highly recommend talking to an accountant in person. You will just confuse yourself if you attempt to learn this from a textbook on your own. The initial meeting with an accountant should be free, so you have nothing to lose.

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Portia profile image
By Portia Nina Levin
11th Jul 2014 23:21

Ooh a plumber

That's convenient. Just lately I've been thinking about moving my stop [***]. It's underneath one of the cupboards in the far corner of my kitchen, and I think it would be so much more convenient if it were in the cupboard under my sink.

Is there perhaps a book or a simple guide I can use to steer me through the process? Perhaps you could give me some step by step instructions?

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By Larington
12th Jul 2014 16:00

Just trying to get an understanding of the big, bad real world
Ah right I think I get it now (Not what I was initially told)

It was more of a basic understanding basis so that when I hire an accountant to do my books/returns I have a stronger base to underpin some flakey knowledge that I have. Too many people with too much advice have warped what little I had. I wanted the underpinning knowledge so I could work out if the accountant was worth his/her salt and that I would understand what they were saying we should do for me/my little firm. In the same way if a customer had some understanding of how plumbing works it's easier to explain what's wrong or why something is acting the way it is, if they don't have that I can explain it to them in a simple easier to understand way, than what they may find in some books/online, that's all I wanted.

Would a consultation for a reputable accountant be free then? I thought it would cost a fair whack. So what would be involved in this initial meeting? I just don't want to completely waste their time having to start at the basics that's why I wanted a bit of understanding.

And yes smart [***] I could give it to you in a step by step process and should you get it wrong it's easy enough to correct. Should you have the underpinning knowledge, it's very simple. I'm relatively young and starting on my own and would rather get right from the beginning. Don't worry I'm not trying to become an accountant so don't worry about competition ;p hehe

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By tonyh
12th Jul 2014 16:37

free consultation

These serve as an introduction so both parties can decide if they like each other.

You maybe surprised how little accountants charge and if you take into account the amount you could earn whilst reading books you will see it is not worth struggling on your own.

After 40 years in accountancy I can honestly say I have saved the client far more that they have paid me in fees.

You have asked how   much you would get back. Get back refers to vat and you would need to be vat registered.

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By Duhamel
12th Jul 2014 20:11

@ Glen
Thanks, I've seen PNL's comments recently so I wouldn't take it to heart. Although, as you could write down the extent of my plumbing knowledge on the back of a stamp, I believe PNL was referring to the OP and not me.

I believe Tony has covered off all the remaining sensible points.

Edit: not sure what happened to Glen's comment, can't see it now.

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Glenn Martin
By Glenn Martin
14th Jul 2014 11:48

@Larrington

so much more to think about other AIA.

Should you be a company or sole trader

Should you buy a van or lease as 2 total different treatments from tax and accounts position.

How to keep your records, hiring staff VAT registration.

Al these should covered initial meeting which most local accountants would not charge for.

As mentioned above it is important that you are set up right from day 1.

I would recommend that if you are likely to be a "one man band" style operation that you see a an accountant with a similar set up as he will have a better understanding of your business and to be honest is rate will probably be not much different to you own. 

 

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By allenlunn
16th Jul 2014 09:25

Mr white van man doesn't need

Mr white van man is far too smart. Try "googling", then if still not happy with your specific outcome - see an accountant; fees may vary and you could be at risk if you wander into unchartered territory.

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