Van bought in Jan 09, business started in Apr 09 - accounting help???

lisa76

My husband bought his van in January 2009 using his own money, he bought it ready to start his business April 2009 (it was a good buy). The van was bought for £3500. The van is used 70% for business and 30% private (so I adjust the fuel costs accordingly). My questions are:
1. Can I bring the van onto his books seeing as it was bought before the business started?
2. Can I claim any proportion of taxable relief on it?
I think these are the last of my questions!
Thanks in advance!

zygurat789

lisa76 wrote: »

My husband bought his van in January 2009 using his own money, he bought it ready to start his business April 2009 (it was a good buy). The van was bought for £3500. The van is used 70% for business and 30% private (so I adjust the fuel costs accordingly). My questions are:
1. Can I bring the van onto his books seeing as it was bought before the business started?
2. Can I claim any proportion of taxable relief on it?
I think these are the last of my questions!
Thanks in advance!

1. Of course
2.Yes 70%

lisa76

So a van is classed as equipment therefore I can claim AIA of £2450 (70% of £3500) + whatever other equipment he has bought (as long as it's under £50k). Is this right seeing as it's his first year of trading and considering he brought the van into the business?

zygurat789

lisa76 wrote: »

So a van is classed as equipment therefore I can claim AIA of £2450 (70% of £3500) + whatever other equipment he has bought (as long as it's under £50k). Is this right seeing as it's his first year of trading and considering he brought the van into the business?

Not quite. You Write the van down by the AIA of £3500 and then claim 70% of that. The difference being that the van is worth nil for tax purposes and when it is sold the proceeds are all taxable.
Technically a van purchased for 3500 in jan is not worth £3500 in April because it's older.