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[Sneeze]

We have purchased a used van which comes under AIA, would it be best to enter it as misc motor expenses?

[QFSteve]

Hello @Sneeze

Unfortunately the support team can not help with queries such as these.

It would be best to speak to your accountant for professional tailored advice.

I will leave this thread open for now as some of the community who are registered accountant may wish to comment.

[Darren_Smith]

Hi @Sneeze

I would use either:

or

…

Which are found in QF under:

You shouldn’t post it to Misc Motor Expense because an asset like a van is not treated as an expense, it is treated as a (fixed) (non-current) asset which is depreciated.

Hope this helps !

[cbstephensaca]

AIA is for purchases of fixed assets, so as @Darren_Smith says, you should not use motor expenses. If it is wholly for business use, it should be capitalised as plant and machinery, meaning that capital allowances can be claimed (which is what the AIA is).

You will then need to depreciate it in your accounts over the period of its expected useful economic life, by way of a year-end journal.

When preparing the tax return, you then add back that depreciation, and instead claim capital allowances. You can claim the AIA amount in full, or sometimes it’s better to claim writing down allowances at 18% per year. The decision which to claim is based on your profits or losses at the end of the year, and you should speak to your accountant to determine which is best for your particular circumstances. Usually it would just be AIA.

[Sneeze]

Thanks for this, very useful information. It does seem to be an awful lot of effort for £750 though.