How to put new van on tax return
Posted: 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?
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?