The Bookkeepers.Network (BKN)

Post Info TOPIC: Capital Allowance query when car sold


Master Book-keeper

Status: Offline
Posts: 2611
Date:
Capital Allowance query when car sold


Having a bald head moment here, as this should be fairly straight forward.

Sole Trader

Net book value 4k car sold for 2.5k   1.5k loss on pl disposals.    ok so far.

Capital allowances b/f  6.5k disposal 2.5k so carrying forward 4k how do I write this out on tax filer?  At the moment it wants to give me a WDA of £323, which I know isn't right.

I've a feeling I need to put the 4k residue in the balalncing allowance/charge bit but I can't enter anything in there?

jh writedown.png

 



Attachments
__________________

John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.



Guru

Status: Offline
Posts: 601
Date:

Hi John, on my phone so only had a quick look but if the car is in a single asset pool because of private use then should the 4K not be a balancing charge after disposal

__________________

Doug

These are only my opinions of how I see things and therefore should not be taken as advice



Master Book-keeper

Status: Online
Posts: 7091
Date:

Lol John, a bald moment. Who would believe it after that cute picture of a boy with so much hair. As my sist outlaw says 'grass doesn't grow on a busy street'.

I'm having a blond moment, after a radical change this weekend, doesn't it go on as a balancing thingy?

Doug beat me to it. Edited. I hate using my phone too!



-- Edited by Cheshire on Wednesday 3rd of October 2018 09:35:02 AM

__________________

Joanne  

 

Winner - Bookkeeper of the Year 2015, 2016 and 2017

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

 



Guru

Status: Offline
Posts: 601
Date:

Sorry meant balancing allowance Hate using my phone to post

__________________

Doug

These are only my opinions of how I see things and therefore should not be taken as advice



Guru

Status: Offline
Posts: 601
Date:

 

Hi John

Back on the computer now and so its much better, from my earlier answer because you said it was a car I had assumed that it would have a % of private use so would be in the single asset pool and on the disposal this would bring about a balancing allowance, however now I can see that the car is in the Special Rate Pool so I believe Taxfiler to be correct as no balancing allowances will be available until the business ceases to trade. 



__________________

Doug

These are only my opinions of how I see things and therefore should not be taken as advice



Master Book-keeper

Status: Offline
Posts: 2611
Date:

Artois wrote:

 Hi John

Back on the computer now and so its much better, from my earlier answer because you said it was a car I had assumed that it would have a % of private use so would be in the single asset pool and on the disposal this would bring about a balancing allowance, however now I can see that the car is in the Special Rate Pool so I believe Taxfiler to be correct as no balancing allowances will be available until the business ceases to trade. 


 Hi Doug

Ooooh when did that change?  Slap wrists to myself for not knowing - I'm sure you used to be able to claim back on losses.

Q1.  Do I continue to write it down until he ceases trading, even though client no longer has the vehicle? 

Q2.  (for clarification)  For tax purposes, do I disallow the £1.5k loss in the PL - I'm assuming so.

PS: No private use, they have a family car and he just uses it for work (s/e electrician) 

 

Hi Joanne

You say the nicest things!  I started going bald at the tender age of 28/30 and it looks like my son is following as his hair is thinning out rapidly, and he's only 30 bless him. 

 

Thank you both for your help, very much appreciated.



__________________

John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.



Guru

Status: Offline
Posts: 601
Date:

 

Hi John (nice pic by the way)

Q1.Yes continue WDA at 8% until either business ceases to trade or WDV falls under the small pools allowance of £1000 in which case claim that instead.

Q2. Disposal as normal in the accounts but add the loss back to profit for tax purposes.

Not sure of the circumstances but maybe advise him to buy a van in future so AIA can be claimed or if he is going to buy a car either go for simplified expenses or have some private use so it goes in the single asset pool  

Cheers



__________________

Doug

These are only my opinions of how I see things and therefore should not be taken as advice



Master Book-keeper

Status: Offline
Posts: 2611
Date:

Artois wrote:

 Hi John (nice pic by the way)

Not sure of the circumstances but maybe advise him to buy a van in future so AIA can be claimed or if he is going to buy a car either go for simplified expenses or have some private use so it goes in the single asset pool  


 That was when I was 5 lol. The original picture is now very faded but a friend very kindly did a photo restore job on his computer and I was over the moon with the result.

The first I knew the client had bought another car was when he gave me the accounts a month ago, and he'd bought it in June last year.  But a valid point and although I normally work on mileage where suitable this one gave me fuel receipts from day 1, and it's a once a year job, so everything is in hindsight.

 



__________________

John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.



Guru

Status: Offline
Posts: 601
Date:

Leger wrote:

The first I knew the client had bought another car was when he gave me the accounts a month ago, and he'd bought it in June last year.  


So you also need to account for the addition of a new car in 2017/2018 as well as the disposal of the old one (or am I reading this wrong)

If you are going to be claiming CA on this car as well I would be making sure it went into the single asset pool instead of the main rate/special rate pools so you don't have this same problem in the future.

 



-- Edited by Artois on Friday 5th of October 2018 07:22:25 AM

__________________

Doug

These are only my opinions of how I see things and therefore should not be taken as advice



Master Book-keeper

Status: Offline
Posts: 2611
Date:

Artois wrote:
Leger wrote:

The first I knew the client had bought another car was when he gave me the accounts a month ago, and he'd bought it in June last year.  


So you also need to account for the addition of a new car in 2017/2018 as well as the disposal of the old one (or am I reading this wrong)

If you are going to be claiming CA on this car as well I would be making sure it went into the single asset pool instead of the main rate/special rate pools so you don't have this same problem in the future.

 



-- Edited by Artois on Friday 5th of October 2018 07:22:25 AM


 Already done, thanks.  He'd forgotten about that trip to the newsagent to collect his paper biggrinbiggrin    Seriously I've gone for 1% private mileage. 



__________________

John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.

Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.

Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  

©2018 The Bookkeepers Network (BKN). All Rights Reserved. The Bookkeepers Network (BKN) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Bookkeepers Network and BKN are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Bookkeepers Network. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Bookkeepers Network. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: info@bookkeepers.network or info@bookcert.co.uk.

Privacy & Cookie Policy