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Sole Trader building a Wooden Shed/Workshop and buying a small van

howellbp
Posts:3
Joined:Tue Mar 21, 2017 1:10 pm
Sole Trader building a Wooden Shed/Workshop and buying a small van

Postby howellbp » Tue Mar 21, 2017 1:36 pm

Two questions if possible please.

My son started working as a sole trader in May 2016 and manufactures hand crafted and hand painted home and wedding décor from wood. He currently works from a dilapidated old garden shed.

He is preparing his accounts on a cash basis.

1. He plans to build a new 5m x 3m wooden shed/workshop (technically a temporary structure). It will cost £2,500 to £3,000 and will be used solely for business purposes. Can he include this as an allowable expense?

2. He wants to buy a small van. As he accounts on a cash basis he cannot claim capital allowances. Can he claim the full purchase cost as an allowable expense?

Many thanks in advance.

chrisintheuk
Posts:4
Joined:Fri Feb 10, 2017 10:45 am

Re: Sole Trader building a Wooden Shed/Workshop and buying a small van

Postby chrisintheuk » Tue Mar 21, 2017 8:50 pm

Hi, on your second question, i believe you can claim a proportion of the van cost as an expense based on the usage for personal and business mileage. Recently asked the same question and thats the answer i got.

howellbp
Posts:3
Joined:Tue Mar 21, 2017 1:10 pm

Re: Sole Trader building a Wooden Shed/Workshop and buying a small van

Postby howellbp » Tue Mar 21, 2017 8:55 pm

Hi chrisintheuk,

Thanks for the reply......the van is for business use only.....no private use.

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Sole Trader building a Wooden Shed/Workshop and buying a small van

Postby bd6759 » Tue Mar 21, 2017 11:32 pm

1. The shed is a structure so would not qualify for capital allowances. On that basis, it will not qualify as an expense.

2. The van is allowed as an expnese, restricted, as noted above, if there is any non-business use.

howellbp
Posts:3
Joined:Tue Mar 21, 2017 1:10 pm

Re: Sole Trader building a Wooden Shed/Workshop and buying a small van

Postby howellbp » Wed Mar 22, 2017 9:41 am

Hi bd6759....thanks for the reply....succinct and to the point....brilliant.


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