Following on from my previous post this client (driving instructor) has a vehicle that is on finance over 5 years. No problems there but I am a lot confused on recording fixed asset and depreciation figures. The client has broken the mileage down between personal use and business mileage so I know the two percentages at present.
I have a client who has a taxi business and for the first year I used DIY accounts. On fixed assets there was a percentage you could insert for private use but there is no facility on VT + to do the same, so what is the best way of recording the personal use.
Do I also need to do something similar for vehicle expenses?
Depends on how you have set the company up in VT but if you look at the ledgers, you may find you have one called Disallowable expenses, which mirrors the normal Expense ledgers, you can post the non business amount in there.
It still shows in the financial statements but shows the figures seperately, so you can make adjustments for tax computations (particularly, useful if you use the 3rd party software link for calcualting tax)
