vans and capital allowances

Lynette
Lynette FMAAT, AAT Licensed Accountant Posts: 3
I have a client who has purchased a Toyota Rav 4 for work, as he travels all over the UK and in all weathers to fit flooring. Can we claim the full cost in his accounts. He is a sole trader and we use cash accounting. Is there a hmrc approved list of vehicles that are classed as plant? Help/views please!

Comments

  • douglasstroud
    douglasstroud Registered Posts: 222
    My opinion is that it seems to be a car and therefore CA should be claimed in the usual way for a car, What does RAV stand for?
  • Lynette
    Lynette FMAAT, AAT Licensed Accountant Posts: 3
    thanks Douglas. I don't know what RAV stands for. I'm not a car person. He wanted it because of the 4 wheel drive, because of the colder winters and the distance he drives. My gut feeling is that it is a car too, just looking at the photo. I can't claim cap allows as we use the cash basis so do I claim 90% of the cost (the percentage of business use) in the accounts
  • douglasstroud
    douglasstroud Registered Posts: 222
    Hi Lynette
    RAV stands for 'Recreational Activity Vehicle' which makes it seem even less like a work van.
    On the cash basis no deduction is allowed for the cost of a car you claim CA instead, would claiming flat rate motor expenses work out better, you will have to run the figures and see.

  • Lynette
    Lynette FMAAT, AAT Licensed Accountant Posts: 3
    Thank you for your advise
Privacy Policy