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How to put new van on tax return

Posts: 1
Joined: Thu Apr 13, 2017 7:04 pm

How to put new van on tax return

Postby blackburnlad » Thu Apr 13, 2017 7:51 pm

In my 2014/15 tax return I bought a van for £3995 and claimed the full Annual Investment Allowance. I sold that van for £1300 in July 2016.

In July 2016 I purchased a new van on Hire Purchase for £11,000. I paid approx. £2000 deposit and monthly finance payments. About 4 months later I settled the balance using a personal loan because the interest rate was a lot less. I am still paying monthly payments on the loan and have another 3 years left.

On my tax return I can see where to put the £11,000. Do I put the £1,300 in the "Total balancing charges - where you disposed of items for more than their tax value" box?

By doing this, does it mean that I cannot offset any of those monthly payments against future tax years, meaning I pay a lot less tax for 2016/17, but more tax for the next three years?

I am just not sure if I am able to put the HP interest payments on my profit/loss? Also, I paid the balance off with a personal loan, can I put those interest payments on my profit/loss as well?

Is there anything I need to be aware of? My profits for the year are over £11,000 so that should be ok?

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Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: How to put new van on tax return

Postby pawncob » Thu Apr 20, 2017 11:25 am

You can offset the interest element against tax.
With a pinch of salt take what I say, but don't exceed your RDA

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