Hi all Following on from a third party crashing into my van it has been written off and a settlement figure has been agreed and subsequently transferred into out business account. My question is how should this be accounted when it comes to the accounts ? Presumably its not classed as 'income' as such ? Its only 6k but naturally I don't want to be clobbered for tax IF I don't need to be ? Luckily we did qualify for the SEISS grants as our income last year was massively wiped out so I am keen for this not to look like we have made good profit in a month as its not really profit as its gone straight back out on a new van Thanks in advance
Have you spent the £6k on another van? If so, the purchase of the replacement van will offset the income when claimed under annual investment allowance (AIA) on your tax return, leaving your overall profit and loss unaffected.
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