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  • FIRST POST
    • Righttrack
    • By Righttrack 16th Mar 17, 11:02 AM
    • 14Posts
    • 1Thanks
    Righttrack
    Year End Return
    • #1
    • 16th Mar 17, 11:02 AM
    Year End Return 16th Mar 17 at 11:02 AM
    Hi,
    I'm not sure if this is the right section to ask this.
    Partner is self employed, I do his books which is easy enough. I have a question about the van he has just bought on HP.
    I know that I put an interest invoice through each year but wanted a bit of help with depreciation?
    Each year I can claim 25% of the nett value, but do I put an invoice through the expenses or does it get listed somewhere else on the tax return? Just a bit worried how that will effect the profit

    Thanks
Page 1
    • purdyoaten2
    • By purdyoaten2 16th Mar 17, 8:56 PM
    • 584 Posts
    • 257 Thanks
    purdyoaten2
    • #2
    • 16th Mar 17, 8:56 PM
    • #2
    • 16th Mar 17, 8:56 PM
    You don't claim depreciation in any circumstance- you claim capital allowances. However, a van can be considered for first year allowances.

    https://www.gov.uk/capital-allowances/overview

    In simple terms you can claim the FULL cost of the van as a tax deduction. How much did the van cost and what profit has been made excluding this?

    By the way - no need to invoice for the HP - just claim it!
    purdyoaten lost his password
    • Righttrack
    • By Righttrack 17th Mar 17, 10:47 AM
    • 14 Posts
    • 1 Thanks
    Righttrack
    • #3
    • 17th Mar 17, 10:47 AM
    • #3
    • 17th Mar 17, 10:47 AM
    Hi,

    Thanks for the reply. Full nett cost of the vehicle £15,320. Profit will be around £17,500
    So where abouts on the tax return does it go? Surely I don't put it through in standard expenses?
    • antrobus
    • By antrobus 17th Mar 17, 11:45 AM
    • 14,920 Posts
    • 21,134 Thanks
    antrobus
    • #4
    • 17th Mar 17, 11:45 AM
    • #4
    • 17th Mar 17, 11:45 AM
    Hi,

    Thanks for the reply. Full nett cost of the vehicle £15,320. Profit will be around £17,500
    So where abouts on the tax return does it go? Surely I don't put it through in standard expenses?
    Originally posted by Righttrack
    No, you don't put it through in standard expenses.

    If, for example you were completing the Self-employment (short) form, it would go in 'Tax allowances for vehicles and equipment (capital allowances)' i.e. £15,320 in box 23

    https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/503322/sa103s-2016.pdf

    The question would be whether that is what you should do. The personal allowance is currently £11,000. A taxable profit of £17,500 would mean tax is payable on £6,500. So you don't want to claim more than £6,500; you would just be wasting it. (Depending on partner's overall tax position, of course)
    • purdyoaten2
    • By purdyoaten2 17th Mar 17, 1:04 PM
    • 584 Posts
    • 257 Thanks
    purdyoaten2
    • #5
    • 17th Mar 17, 1:04 PM
    • #5
    • 17th Mar 17, 1:04 PM
    As a tribes says claim £6500 - no point in reducing your profit below £11000. (Why I asked my question)

    Next year you can claim 18% of £8820
    purdyoaten lost his password
    • Righttrack
    • By Righttrack 17th Mar 17, 1:04 PM
    • 14 Posts
    • 1 Thanks
    Righttrack
    • #6
    • 17th Mar 17, 1:04 PM
    • #6
    • 17th Mar 17, 1:04 PM
    Thanks, I've never used the short form, looks so much quicker than returns I have been doing!
    Can I use part of the allowance on this year and then some next year, or can you only claim once?
    My concern where it went on the return was that I didn't want it to impact the profit declared for when we come to remortgage next year.
    • Righttrack
    • By Righttrack 17th Mar 17, 1:05 PM
    • 14 Posts
    • 1 Thanks
    Righttrack
    • #7
    • 17th Mar 17, 1:05 PM
    • #7
    • 17th Mar 17, 1:05 PM
    Thanks purdyoaten, Cross posted so you've already answered my question
    • purdyoaten2
    • By purdyoaten2 17th Mar 17, 1:05 PM
    • 584 Posts
    • 257 Thanks
    purdyoaten2
    • #8
    • 17th Mar 17, 1:05 PM
    • #8
    • 17th Mar 17, 1:05 PM
    Thanks, I've never used the short form, looks so much quicker than returns I have been doing!
    Can I use part of the allowance on this year and then some next year, or can you only claim once?
    My concern where it went on the return was that I didn't want it to impact the profit declared for when we come to remortgage next year.
    Originally posted by Righttrack
    Our posts have crossed !
    purdyoaten lost his password
    • purdyoaten2
    • By purdyoaten2 17th Mar 17, 1:06 PM
    • 584 Posts
    • 257 Thanks
    purdyoaten2
    • #9
    • 17th Mar 17, 1:06 PM
    • #9
    • 17th Mar 17, 1:06 PM
    Our posts have crossed !
    Originally posted by purdyoaten2
    Again!!
    purdyoaten lost his password
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