I’ve read up on the GOV site that I can claim a new van against profit as an AIA (Annual investment allowance) in one year.
I’ve just paid for the van, (picking it up in the next week)so it’s now showing in my business bank account with “tag me” status. I will want to claim the vat back on it and as far as I understand the AIA is claimed on the end of year tax form.
My question is- What is he simplest way of dealing with this in QuickFile?
Any help would be greatly appreciated. Mark
How you deal with it in QuickFile and how you deal with it on your tax return are two separate things. In QuickFile you enter it as an asset and depreciate it over several years as normal, the AIA simply reduces the taxable profit on your tax return, it doesn’t affect the book profit in your accounts.
So to answer your actual question, create a purchase in QuickFile from the invoice you were given by the seller, categorised as a motor vehicle asset, and then tag the bank transaction as payment to a supplier in the normal way.
Many thanks Ian,
I was really struggling to get my head around how to account for it without making a total hash of my accounts in the process.
You have explained it in a way that I can follow that makes sense.
Your assistance is greatly appreciated.
Mark
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