Can I claim Van as capital allowance?

DrPepper1234

The van (diesel) was purchased for just under 5k, it is used for business purposes only.  I was going to put this amount under allowable expenses but realised that possibly it  should be under Capital allowance. Therefore my question is do I put the full purchase amount under the AIA section? Also next year do i then have to work out a a depreciation figure?  thanks. 

Jeremy535897

If you use the cash basis, it is an allowable expense. If you don't, you claim capital allowances, and you can claim 100% AIA, assuming you need to.

If the whole balance is claimed in the year of purchase, any future depreciation is not tax deductible. Whether you need to bother with depreciation depends on whether you complete a proper set of accounts each year.

DrPepper1234

thank you Jeremy. I tried to reply using your quote but it wouldn't let me.
I use cash basis so i'll put this through as an allowable expense. 

Jeremy535897

Remember that the sale proceeds will count as income when you get rid of the van.

Grumpy_chap

Will the van be subject to BIK for a sole trader?
If so, does the benefit of being a business asset outweigh simple mileage claims?

Jeremy535897

Grumpy_chap said:

Will the van be subject to BIK for a sole trader?
If so, does the benefit of being a business asset outweigh simple mileage claims?

Only employees can receive benefits in kind. A sole trader just claims the business proportion of the cost and associated expenses, which in this case is 100%. Mileage claims are never better than claiming the full costs where a 100% immediate allowance is given on the van's cost.

Vans with no private mileage don't give rise to benefits in kind for employees either.

DrPepper1234

Jeremy535897 said:

Remember that the sale proceeds will count as income when you get rid of the van.

Noted, thanks