Tax relief on a van

lynddam

I bought a van in july 2006 can i claim tax relief on it in my tax year2007-2008 i am a sole trader i didnt calim anything in year ending 2006

fengirl_2

You can include the running costs in your accounts and claim capital allowances on your self assessment.

Merlin_Accounts

If you bought the Van in 2006, and you are preparing Accounts to 5 April (2007) then why not file an error/mistake claim with HMRC (had you spotted this error before 31 Jan 2009 you could have simply filed an amended 2007 tax return).

Your error mistake claim should set out what you are claiming (50% first year allowances) plus running costs for the Van. If its on finance dont forget to claim for the interest too.

For the year to 5 April 2008 you can file an amendment to your 2008 tax return to incorporate a claim for writing down allowances of 25% plus the running costs and interest.

An alternative, if you are not VAT registered, is to make a claim based on recorded business mileage for each year (first 10k pa @ 40p per mile, rest at 25p). Note that the mileages must be recorded - dates and purpose of each trip as well as start and end points and mileage covered.

It would be worthwhile doing either of the above as you will get back tax that you have overpaid as a result of having not claimed in the first place.