I have a new client who works from home but does travel alot for business, she uses her car for both personal and business, I have been given her books for 2007/2008 and 2008/2009 There is a list of capital allowances as follows for April 2006/March 2007
Vehicle bought 25/07/06 Clio £10591.00 WDA @25% £2647.75 (x53% business then divided by 4) = £350.83 WDV C/F £7943.25
She has worked out her personal mileage and business
Total business mileage 857 Total personal mileage 757 = 1614
which she equals to % of business 53% and total personal 47%
She then sold this car for £6800 on the 5th May 2008 and bought new car for £20,000 on 20th April 2008
I am not sure what to do with all these figures, how they go into sage 50 accounts I need to account for the fixed asset and the depriecation but what about the £350.83, how do I account for this??
You should enter the vehicle addition as normal i.e. debit motor vehicles in fixed assets and credit either bank, HP control or funds introduced etc. The Writing Down Allowance is something that is dealt with on the tax computation after depreciation is added back, and therefore is not entered into Sage 50, it's HMRC's version of deprecitation if you like.
Hope this helps?
Dustin
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