Expenses. Spreading the load

[joebepi]

So, i am self employed and i bought a van this tax year. If i am to put it on through as an expense this year it will put me well below the tax threshold. A couple of people i work with said when they buy something big they split the cost of it over a few years' expenses depending on their earnings each year. This reduces their tax bill each year. (So spreading the cost of a chipper at 6,000, claiming 2000 for 3 years)

 

I expect to earn more next year than this year so it really would make sense to "save up" this expense for next year.

 

Problem is i can seem to find anything on the HMRC website. Anyone got any useful pointers?

 

Cheers (here goes my friday night...)

Joe

[nepia]

The sensible thing is to find yourself an accountant to do your annual return. Don't worry about his fees being yet another expense; he will save you more than the fees.

[flatyre]

not sure on that one, apart from sounding a tad illegal, is the van second hand? did you buy it from a private seller? if so how do you explain the seller allowing you to pay it off in three yearly instalments?

[sloth]

The sensible thing is to find yourself an accountant to do your annual return. Don't worry about his fees being yet another expense; he will save you more than the fees.

This. I think there may be something along the lines the op is thinking, but I am far from an accountant!

[treequip]

not sure on that one, apart from sounding a tad illegal, is the van second hand? did you buy it from a private seller? if so how do you explain the seller allowing you to pay it off in three yearly instalments?

 

WTF????

What's it like on the planet where you live

:laugh1::laugh1:

[billpierce]

Check out "capital gains" think that is what's you thinking of.

 

You are basically right, certain high cost things you can split the cost of over different tax years

 

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[kevinjohnsonmbe]

Start here:

 

https://www.gov.uk/capital-allowances/annual-investment-allowance

[joebepi]

Gettin an accountant is definately a good shout. To clarify the van was bought and paid for last june.

 

I will look up capital gains thanks,

 

I did think it sounded a but dodgy, hence the post.

 

As to the weather, its rainin'. Ta for askin'

[Johny Walker]

Gettin an accountant is definately a good shout. To clarify the van was bought and paid for last june.

 

I will look up capital gains thanks,

 

I did think it sounded a but dodgy, hence the post.

 

As to the weather, its rainin'. Ta for askin'

 

i do believe you can lend yr busness the money to buy the van , cant remember how it works now , but its legal:biggrin:

[flatyre]

WTF????

What's it like on the planet where you live

:laugh1::laugh1:

 

i'll be honest I have no knowledge of legal stuff but a firm I used to work for got in trouble for purchasing and then billing the next tax year!