Just a quick question if I may please everyone please?
Client has bought a car on finance which is used probably about 85-90% for business, now dis-regarding writing down allowance etc etc... If I use the say for arguments sake 10K for the car and have that as the AIA for the year, then with the finance payments would they just be drawings? Or would I have to get client to get interest rate and split the capital payment from interest and work it out on a annual basis.... (groan).
P.s. good to see you back on the site again, where have you been?
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
There are special rules for cars based around their emissions which determines whether they belong in the general or special rate pool so WDA's are available but AIA is not and FYA is only available for very low emmision cars.
Also, the general rule is that you need to check whether its more beneficial for your client to own the car themselves and charge mileage rather than buy the car through the business and suffer the benefit.
Always good to be busy provided that someone is paying you for it.
Hope that we're going to see you back on the site again much more now.
All the best,
Shaun.
p.s. answered the first version of your question about WDA's but I think that the answer is still applicable in the amended form of your question.
-- Edited by Shamus on Sunday 2nd of November 2014 10:34:46 PM
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Because the car has personal use you can claim main pool rate (disallowing the personal use proportion) at 18% and put the asset in it's own 'single asset pool'.
In the accounts debit assets and credit 'loan/Finance creditor'. The finance payments would be debit loan and credit bank (making the necessary adjustments for interest)
sorry to disagree but even personal use cars are affected by the emmissions. Yes I agree that they must be shown seperately in the calculations but high emmission cars even with personal use would still be at 8% rather than 18%.
Personal use has no effect on whether the main pool rate or special pool rate is used in the calculation.
kind regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Quite right Shaun, not sure why I thought it would make a difference, I was probably talking to my mate down the pub, you know his accountant sorts it out so no tax is ever paid cos that's what a good accountant does John! Apologies Gary, I'm going to blame it on the dose of 'Night Nurse' I tool last night!
lol Rob, I've actually got a special service that I offer to my clients to help them pay no tax... I kindly and with great generosity offer to increase my fee's to the level that they won't have to pay anything at all to the tax man because I take on the tax burden for them.... Strangely I'm not getting any takers. The fools must like paying tax! (guffaw).
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Apologies Gary, I'm going to blame it on the dose of 'Night Nurse' I tool last night!
