Asset not treated as finance lease in prior year

New client limited company last years accounts include new asset which was actually on finance lease

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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.

Replies (7)

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Psycho
By Wilson Philips
26th May 2021 19:17

You are proposing to claim AIA on a finance lease asset???

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Psycho
By Wilson Philips
26th May 2021 19:17

.

Thanks (1)
Replying to Wilson Philips:
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By Wycher
26th May 2021 21:03

No I was having a brain fart and trying too hard to see what impact it would have if prior year altered.

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By Calculatorboy
26th May 2021 20:39

when you say finance... exactly what type of agreement was it ? ... for example do the monthly repayments attract vat ?

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Replying to Calculatorboy:
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By Wycher
26th May 2021 21:03

Yes VAT on monthly installments

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By frankfx
26th May 2021 20:59

"Thoughts would be appreciated, as for some reason my brain is slightly foggy today."

Remedy the ( slight) fog, tonight?

Then all shall be revealed.

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Replying to frankfx:
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By Wycher
26th May 2021 21:05

If Utd keeping losing then the fogs may increase.

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