I am a sole trader and I bought a new van in 2016/2017 for the amount of £18000. My accountant recorded this as a capital allowance for that year, it is used solely for the business.
I have changed my accountant recently and she wants to record depreciation for the van, which to me doesn’t make sense as it increases my tax bill (a depreciation I thought helps getting a tax relief, and also I thought that depreciation should only be recorded if the whole amount could not be claimed in the year of purchase).
I am using cash basis.
Could you please tell me if what she wants to do is right and mandatory?