I have a new limited company client who purchased a new van right at the end of their previous trading year, the deposit was treated as addition, but the van was actually on a finance lease and I suspect paperwork was not supplied for previous accounts prep hence error as no other payments in year.
Adjusting this would increase assets and creditors (no material difference) but also claiming AIA would remove corporation paid for last year. Should we restate the accounts for the previous year or simply correct in this years accounts and claim carry back on CT600.
Thoughts would be appreciated, as for some reason my brain is slightly foggy today.
Many thanks.
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when you say finance... exactly what type of agreement was it ? ... for example do the monthly repayments attract vat ?
"Thoughts would be appreciated, as for some reason my brain is slightly foggy today."
Remedy the ( slight) fog, tonight?
Then all shall be revealed.