tax and machinery

[Welsh sheep man]

If someones tax year was 5th of April and they bad ordered a new tractor but still not arrived would you still be aloud to put it in as last year even if invoice was dated march ? any advice welcome thanks

 

[Montexy]

I always thought the tax follows the date of the invoice not the physical goods.

 

[David.]

Ask you accountant.
I think the machine just has to be invoiced, but someone also said it needs to be available to use in the business. I doubt this, because a combine could easily be bought, but not delivered until June

 

[Welsh sheep man]

so just wanting to know what others do

 

[Welsh sheep man]

yes thats a very good point

 

[thorpe]

shoulden't be worrying about tax this year but i bet the bu99ers still want some

 

[Nithsdale]

Invoice date is all that matters.

 

[Welsh sheep man]

for instance as long as I have an invoice for him dattung say 25/03/24 it should be fine right ?

 

[Montexy]

for instance as long as I have an invoice for him dattung say 25/03/24 it should be fine right ?

Myself, I would put that in last years tax as its invoiced last tax year. Can't see how you could put it in this years. Check with your accountant but I only go by invoice date.

 

[ringi]

1st question is: "Are you using cash or traditional accounting?"

 

[Enry]

Ask you accountant.
I think the machine just has to be invoiced, but someone also said it needs to be available to use in the business. I doubt this, because a combine could easily be bought, but not delivered until June

which I believe is an issue....

 

[Enry]

Invoice date is all that matters.

no....
has to be on farm AND put to use in the year that tax relief is claimed

Careful timing needed to claim capital allowances for assets on hire purchase

When buying farm machinery on hire purchase, care needs to be taken with the timing.

www.armstrongwatson.co.uk

 

[Enry]

for instance as long as I have an invoice for him dattung say 25/03/24 it should be fine right ?

Careful timing needed to claim capital allowances for assets on hire purchase

When buying farm machinery on hire purchase, care needs to be taken with the timing.

www.armstrongwatson.co.uk

 

[Nithsdale]

no....
has to be on farm AND put to use in the year that tax relief is claimed

Careful timing needed to claim capital allowances for assets on hire purchase

When buying farm machinery on hire purchase, care needs to be taken with the timing.

www.armstrongwatson.co.uk

That's for hire purchase. OP never mentioned that so it shouldn't be assumed.

 

[Enry]

That's for hire purchase. OP never mentioned that so it shouldn't be assumed.

fair point - there are some cash buyers among us!

 

[Tarw Coch]

That's for hire purchase. OP never mentioned that so it shouldn't be assumed.

Im pretty sure an accountant told me many years ago that a machine must be in use to claim tax relief and used the example of a combine which is seasonal so would be fairly easy for the tax man to pick up on.

 

[Levelsman]

Invoice date is all that matters.

...and for VAT recovery?

That's where I don't quite 'get it' with bank a/c linked accounting systems i.e. Freeagent, Zero, Quickbooks etc

 

[ringi]

We have not been told if the farming is being done var a limited company or sole trader. Also if the invoice is legally required to be paid or is just a confirmation of order.

 

[neilo]

How does the tax man know when a machine is physically delivered, unless the delivery date is written on the invoice of course?

 

[Clive]

If someones tax year was 5th of April and they bad ordered a new tractor but still not arrived would you still be aloud to put it in as last year even if invoice was dated march ? any advice welcome thanks

technically it must be “available for use”

however retrospectively if ever investigated the only evidence would be the invoice date

make of that what you will