I work as a sole trader and need a van for my business. I am aware i can write off the total cost of a van by claiming AIA in my tax return. i just dont know the finer details.
1. I am on a low income. for example i earnt 12000 last year is it viable and legal to purchase a brand new van even though my income dictates that i could not purchase a van with the value of say £25000? Or would i have to purchase a used vehicle at say £10000
2. How does the transaction work? Do i need to put down the initial cost myself and then claim the money back from HMRC when i do my tax return?
3. Is it better to claim the full balance of the van in the first year or spread it out over 5 years as in depreciate it?
4. How would hire purchase work? would i just reclaim the total of the monthly repayments?
5. will claiming AIA affect my other expenses ie mileage, equipment?
Thank you for reading i appreciate any help you have.