The Dreaded AIA.......

minnymo
minnymo Registered Posts: 7 New contributor 🐸
in General accounting discussion
Hi,

Please could someone confirm rules for AIA as I did Tax before these rules were in.

A secondhand cheap van was introduced as Capital at the start of trading, even though it was purchased about a month before the starting date. The cost was only £500.

Am I right that the full 100% can be claimed for this on the Self Employment (short) Tax Return for 2008-2009 even though the sole trader had only been in business for a few weeks prior to 5th April 2009. Is this also the case for s/h tools of the trade, which have been introduced to the business in the same way as the van??

Thanks.


Easy if you know it, not if you dont.......!

Comments

  • deanshepherd
    deanshepherd Registered Posts: 1,809 Beyond epic contributor 🧙‍♂️
    No for both unless they were purchased on anticipation of the business commencing to trade.
  • minnymo
    minnymo Registered Posts: 7 New contributor 🐸
    deanshepherd wrote: »
    No for both unless they were purchased on anticipation of the business commencing to trade.

    Yes they were purchased after redundancy, but in readiness for starting own business within a few weeks after purchase.
  • deanshepherd
    deanshepherd Registered Posts: 1,809 Beyond epic contributor 🧙‍♂️
    Then it's all gravy.

    Watch out for private use of the van.

    All you need to know about AIA in HMRC's CA manual (CA23080).
  • minnymo
    minnymo Registered Posts: 7 New contributor 🐸
    deanshepherd wrote: »
    Then it's all gravy.

    Watch out for private use of the van.

    All you need to know about AIA in HMRC's CA manual (CA23080).

    Its only used for business use, as there are cars in the family (for private use).
    Thanks for info of HMRC's manual regarding this. I will have a look - not normally the best things to find your way around though, I find!

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