One of my sole trader clients is closing down his self employment as of 31 Mar 15. He has a van which he has been claiming 18% capital allowances on. The WDV is 19000. The market value of the van at 31 Mar 15 was 11000. Now I thought I could deduct the £11k from the £19k and put in a balancing allowance of £8k x 18%.
There are two things confusing me. I read on an Accounting Web post that sole traders can't claim balancing allowances any more but can't find anything on it anywhere else. Secondly, I've used the capital allowances wizard in TaxCalc and rather than putting it in the balancing allowance box on the tax return, it puts it in the WDA box.
I don't have many clients with vehicles, most claim mileage, so I'm not overly familiar with this. Can someone reassure me I'm doing the right thing and which box the number should go in? Thanks
I had the same issue recently. I was advised to stick it in the capital allowances with a note of what I'd done in the tell us about this business box
It's news about not being able to claim it. From gov.uk
If these total deductions are more than the value of the pool, the difference is a balancing charge. If there is any value remaining in the pool, do not work out the writing down allowance, but claim the value remaining as a balancing allowance instead.
