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ck1974


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Ending a business
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Im closing my business as I just found out Im expecting twins and am really not going to have the time to run that and look after them.
I have a car that I claim for through my accounts, Do I need to get rid of this from the accounts and transfer it to me ?  Thanks in advance.

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gbm


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Hi Cheryl,

First of all congratulations and good luck!

If you are a sole trader, not really. Assuming yu were claiming capital allowances, you need a market value when you ceased trading. It doesn't really affect the accounts, more the tax computation.


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ck1974


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I am claiming capital allowances with 50 % pu, how will it affect my tax computation ?

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gbm


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Hi Cheryl,

You will have a WDV from the previous period. You will have a value at cessation, so the difference between the two is the balancing allowances/charge. You then knock off 50% pvt use.

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Nick

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ck1974


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Cheers my dears, my head seems to have gone to mush recently !

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ck1974


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Sorry to post about this again but Ive been trying to do the calculation but cant seem to work it out. This baby brain is killing me !! God knows what I will be like when im full term !

If the w.d.v brought forward is £12,000 and is only for a period of 6 months, how do I work it out including the 50% pu ??  The book value would be around 8-9k

Thanks in advance for any help !

-- Edited by ck1974 on Thursday 27th of January 2011 01:31:58 PM

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gbm


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wdv b/f = £12k
value at cessation (say) = £9k
balancing allowance = £3k
50% pvt use = £1,500
Claim = £1,500

NB you should try and substantiate the valuation at cessation

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Nick

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ck1974


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will do, thanks my love xxx

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ck1974


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Hiya me again, Sorry to be a nuisance.

Can I still put through depn for the period Im trading ?


Thanks

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ck1974


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I wish Id never got involved in this but a local book-keeper wanted £500 for 6 months work ! is that bad ??
Anyway if I claim depreciation that comes of my P&L right but then capital allowances would be added back onto my tax return ? am I right so far ??

If I dont put depreciation through can I forget about the capital allowances or do I have to put them through ??

Confused.... me too

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BudgetB


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I'm slightly lost on the question, but depreciation doesn't go on the tax return, you claim capital allowances instead. Is that the answer you were looking for?

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Jenny

 

Responses are my opinion based on the information provided.  All information should be thoroughly checked before being relied on.

 
ck1974


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I knew Id confuse you, the way I understand it to be is that I take the depreciation from my sales as part of my expenses.

Then when I come to do the tax return it says I have to add back on capital allowances claimed, so Im not really gaining anything, so as my profit is only £3313 for the year without depreciation should I just leave depreciation/capital allowances off ??

Hope I havent confused you too much.

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BudgetB


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You add the depreciation back to your net profit and then subtract the capital allowances. Based on the figure you provide there's not a lot of point claiming the CA as you're under the personal allowance limit anyway so it is a bit of a waste of your CA.

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Jenny

 

Responses are my opinion based on the information provided.  All information should be thoroughly checked before being relied on.

 
ck1974


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So does that mean leave the depreciation off as well ? Sorry.

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gbm


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Hi Cheryl,

I think, in your circumstances, you should just leave the depreciation off, but still claim the capital allowances. It won't affect the tax due, but the business is finishing anyway.


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Nick

Website: www.gbmaccounts.co.uk
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BudgetB


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When you copy your accounts figures onto your tax return, ignore the depreciation number. Put the capital allowances amount in the CA box.

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Jenny

 

Responses are my opinion based on the information provided.  All information should be thoroughly checked before being relied on.

 
ck1974


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So the capital allowances will reduce my profit ? Sorry to be appearing so thick but not much is making sense at the minute. Im not that much of a thicko honestly ;o)

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gbm


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Yes it should do.

Jenny, beat you to it!!!

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Nick

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BudgetB


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Yes they will do.

Nick - only by seconds!!  smile

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Jenny

 

Responses are my opinion based on the information provided.  All information should be thoroughly checked before being relied on.

 
ck1974


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Thanks everybody, much appreciated x

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