I am a young self employed carpenter and I am looking to buy a new van for business use within the current financial year 2017/18 and I would like some advise on how I should treat this within my tax return.
The approximate purchase value is £9000 + VAT . I am also looking to finance the van through a standard HP agreement. I am likely to need a deposit which would be funded through part exchange of my current van which was a cash purchase in May2016 for approx. £3000. This purchase was not included in my tax return for 2016/17. In addition to the part exchange of my existing van I may need to enhance a deposit value through a cash payment.
A friend has mentioned using the Annual Investment Allowance as I have no other business assets, but I’m not sure how I represent this based upon the information above. Do I need to take into account the value of the part exchange and cash payment or do I show the purchase price Including VAT. Also would there be any benefit in making an amendment to my prior years tax return to show my original van purchase?
Furthermore can I deduct the interest on the HP agreement from my taxable profits over the period of the agreement?
I am working on getting an accountant but in the mean time I would be grateful for some advise.
Many thanks
- Home
-
Tax News
- Budgets and Autumn Statements
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings & Investments, Pensions & Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations & Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practice and Methods
- Professionals in Practice & Industry
- General
- TaxationWeb
-
Tax Articles
- Budgets and Autumn Statements
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings and Investments, Pensions and Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations & Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practice & Methods
- Professionals in Practice & Industry
- General
- Tax Tips
-
Tax Forum
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings & Investments, Pensions & Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations and Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practices & Methods
- Professionals in Practice & Industry
- General
- Tax Jobs
- Get in Touch