Forum Message

Van Purchase

Just trying out your software, very very good so far, but !
Newly self employed June 2010 and bought a van in december for 7500 + vat. Just registered for vat this week. My question is - is my van an expense or asset and do i claim the value under the aia rules. And what about the vat ? how do i change the settings in the software to allow for vat after mid december 2010. Hope it makes sense to you.

Mike


Posted by Michael on Jan 21, 2011 1:19 PM GMT

Hi Mike,

I'm not sure what 'aia' is, but under normal accounting rules you should record the van as an asset under 'Motor Vehicles'. You are allowed to write off a portion of the asset each tax year based on the capital allowance amount - to calculate this amount contact your accountant or local tax office. You can then record depreciation for this amount as described here:
http://www.solaraccounts.co.uk/help/how-to-record-depreciation-of-an-asset.php

To tell Solar Accounts that you are VAT-registered, click menu Setup > Contact Details & VAT > Registered for VAT. Then go to the Transactions list and open each transaction that should appear on your VAT return (ie. the van purchase and any transaction after your VAT-registration date). In the transaction window, set the VAT Treatment field to either 'Sale of Goods or Services to UK Customer' or 'Purchase of Goods or Services from UK Supplier'. When you come to preparing your first VAT return ensure that the VAT period you specify includes December 2010 so that it picks up the van purchase.

Regards,


Posted by Mark McLaren (Solar Accounts) on Jan 21, 2011 2:48 PM GMT