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Post Info TOPIC: AIA allowance on HP....Have I got this right?
rachel_mclean


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AIA allowance on HP....Have I got this right?
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Hi, I think I have this worked out but would just like someone to check for me please. 

I read HMRC's pages on Annual Investment Allowance as it looks like I can claim 100% of the cash price of the Van as AIA in the year it was bought? is this correct?

 

Bought a work van on HP (100% business use)

Cash price9850.00
HP Charge1909.40
Fee10.00
  
 11769.40

Deposit paid 1,600

60 monthly payments of 169.49

 

What I think I need to do:

Annual investment allowance claim 9850.00

HP Charge 1909.40/60 = 31.82 - So I'll expense 31.82 of each 169.49 as it is paid

Thanks in advance

Rachel



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Rachel
Leger


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Sounds right to me Rachel. You can also expense the fee 



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John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
rachel_mclean


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Thanks John


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Rachel
rachel_mclean


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I think I mostly just needed to know that AIA could be claimed for the full amount even though it was bought on HP and is being paid off over several years



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Rachel
Leger


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Sometimes the tax system can favour the client  smile   Its only WDA in a lump sum up front.  Obviously when he sells the vehicle then a balancing charge would need to be made for the value at that time.



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John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
abacus12345


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Not always worth claiming AIA in my opinion.

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Johnny  - Owner of an overly-active keyboard. 

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Leger


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Yes, every case has to be treated on it's merit.  For example new business bought a van 4 years ago and first year it didn't warrant claiming AIA (no profit) so I did it as WDA instead. 



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John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
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