I'm helping out a friend with their SATR and I'm doing the accounts. They have a HP car. Usually when the car was first purchased I would have claimed WDA on the purchase price and then claim the HP interest as an expense. However the previous accountant has been claiming the HP payments as an expense for the previous 2 years. I am unsure how to continue from this. Do I carry on with what they were doing, claiming HP payments for continuity, or do I take the remaining balance of the car, include it as an asset and do what I would normally do with WDA and HP interest. Any help is much appreciated.
14th May 2020
How to continue from previous Accountant's Mistake
The previous accountant made a mistake, I don't know how to continue from this.