Van as asset - The Book-keepers Forum (UK)

jillemily · Veteran Member

Van as asset

RobH · Expert

Hi Jill,

assuming the van is used 100% for business then claim the lot. vans are classed as plant and machinery so you can claim AIA.

Personally on the 100% bit, if theer is incidental personal usage I would not worry especially if your client has a car too.

Rob

jillemily · Veteran Member

Yeah his truck is signwritten with his company name and he does have a car for personal use.

Thanks for the confirmation

BackOfficeGroup · Guru

I agree with Rob, so long as it is a commercial van, then I would claim all motoring expenses on the P&L and claim the capital allowance.

P

Stardoe · Guru

Hi Rob,

Why are Company vans classed as plant & machinery and not vehicles? One of my clients has just bought a new company van, used exclusively for business, and I have posted it to the vehicles account.

Pauline

RobH · Expert

Hi pauline...good question. I've just checked and there is no specific definition of what plant and machinery and it seems to have been developed from case law. However a van is classed as P&M by hmrc whereas a car is not. I assume the rationale behind this is that a van is used solely for the purpose of carrying on a business otherwise we would all buy vans for our normal transport usage.

Having said that I don't think theer is a problem in posting a van to the vehicles account as it is a vehicle, the accountant will then set up the appropriate 'pool' with regards to capital allowances/AIA and claim any tax relief correctly.

Rob

lisa76 · Newbie

Hi hopefully you'll be able to help on this subject:
Hubby bought van Jan 04 with personal money
Started self-employed business Apr 04 and uses van for business and pleasure (70/30)
He's VAT registered so we use actual cost and proportion it accordingly
My problem arises with AIA. As he didn't use business money the £3000 paid isn't in the accounts, so how do I claim 100% AIA on the van (or is this apportioned too?)
If someone could show me with figures that would be appreciated, thanks

RobH · Expert

Hi Lisa,

you cannot claim AIA as van bought in 04 and introduced into business during 04/05. Has he had accounts done for previous years? If so I would assume the prevailing capital allowance rates have been claimed and theer will be a pooled value from which further CAs can be claimed.

Rob

lisa76 · Newbie

Sorry Rob I was having a very blonde moment when I typed 2004! It's an 04 van so maybe that's what I was thinking!
Let's start again - he bought the van Jan 09, started the business Apr 09 so he's introduced the van into the business 09/10.
Sorry about that!

RobH · Expert

Hi Lisa,

my understanding is that you cannot claim AIA on assets previously owned in an earlier fiscal year and introduced into the business later, however you can claim capital allowances. Perhaps someone can corroborate as I am not totally positive. Otherwise second hand assets and assets used partly for private use can attract AIA (though you would need to make adjustment for personal use).

Rob