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Xenjay15

Hire purchase help

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Xenjay15

I purchased a van in jan on hire purchase, I can’t find anywhere to tell me how to claim the expenditure. Do I put down the deposit then 2 months of payments on this tax year, then 12 months of payments for next tax year ect ect.

or do i put a hole lump sum?

any help much appreciated. If you need anymore info please ask.

 

ta 

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Bobsonduggnutt

Dont quote me but I'm sure you would put it through as a monthly, also have the direct debit taken from your business account. I could be wrong but I'm sure I've heard that somwhere.

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Part Timer
On 30/03/2020 at 22:23, Xenjay15 said:

I purchased a van in jan on hire purchase, I can’t find anywhere to tell me how to claim the expenditure. Do I put down the deposit then 2 months of payments on this tax year, then 12 months of payments for next tax year ect ect.

or do i put a hole lump sum?

any help much appreciated. If you need anymore info please ask.

 

ta 

You can only claim for what you've paid out in the relevant tax year. I assume they're sending you an invoice each month or you have access to an online statement.

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KGEC

My understand is each year you have a capital allowance I think it’s changes every year, currently I think it’s £250,000 which means if you buy anything on HP you can claim it back in year one. So if the van was £100 you’d claim all of that and offset it against your profit, reducing the profit and therefore your tax liability. I also have a couple of pieces of kit on lease, I can claim the 12 months payments each years. Your best speaking to your accountant, although I do know from personal experience when you are looking for a mortgage etc you need something down on your books so claiming the full amount in that tax year might not be the best idea. 

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