Having a bald head moment here, as this should be fairly straight forward.
Sole Trader
Net book value 4k car sold for 2.5k 1.5k loss on pl disposals. ok so far.
Capital allowances b/f 6.5k disposal 2.5k so carrying forward 4k how do I write this out on tax filer? At the moment it wants to give me a WDA of £323, which I know isn't right.
I've a feeling I need to put the 4k residue in the balalncing allowance/charge bit but I can't enter anything in there?
Hi John, on my phone so only had a quick look but if the car is in a single asset pool because of private use then should the 4K not be a balancing charge after disposal
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Doug
These are only my opinions of how I see things and therefore should not be taken as advice
Lol John, a bald moment. Who would believe it after that cute picture of a boy with so much hair. As my sist outlaw says 'grass doesn't grow on a busy street'.
I'm having a blond moment, after a radical change this weekend, doesn't it go on as a balancing thingy?
Doug beat me to it. Edited. I hate using my phone too!
-- Edited by Cheshire on Wednesday 3rd of October 2018 09:35:02 AM
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Back on the computer now and so its much better, from my earlier answer because you said it was a car I had assumed that it would have a % of private use so would be in the single asset pool and on the disposal this would bring about a balancing allowance, however now I can see that the car is in the Special Rate Pool so I believe Taxfiler to be correct as no balancing allowances will be available until the business ceases to trade.
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Doug
These are only my opinions of how I see things and therefore should not be taken as advice
Back on the computer now and so its much better, from my earlier answer because you said it was a car I had assumed that it would have a % of private use so would be in the single asset pool and on the disposal this would bring about a balancing allowance, however now I can see that the car is in the Special Rate Pool so I believe Taxfiler to be correct as no balancing allowances will be available until the business ceases to trade.
Hi Doug
Ooooh when did that change? Slap wrists to myself for not knowing - I'm sure you used to be able to claim back on losses.
Q1. Do I continue to write it down until he ceases trading, even though client no longer has the vehicle?
Q2. (for clarification) For tax purposes, do I disallow the £1.5k loss in the PL - I'm assuming so.
PS: No private use, they have a family car and he just uses it for work (s/e electrician)
Hi Joanne
You say the nicest things! I started going bald at the tender age of 28/30 and it looks like my son is following as his hair is thinning out rapidly, and he's only 30 bless him.
Thank you both for your help, very much appreciated.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Q1.Yes continue WDA at 8% until either business ceases to trade or WDV falls under the small pools allowance of £1000 in which case claim that instead.
Q2. Disposal as normal in the accounts but add the loss back to profit for tax purposes.
Not sure of the circumstances but maybe advise him to buy a van in future so AIA can be claimed or if he is going to buy a car either go for simplified expenses or have some private use so it goes in the single asset pool
Cheers
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Doug
These are only my opinions of how I see things and therefore should not be taken as advice
Not sure of the circumstances but maybe advise him to buy a van in future so AIA can be claimed or if he is going to buy a car either go for simplified expenses or have some private use so it goes in the single asset pool
That was when I was 5 lol. The original picture is now very faded but a friend very kindly did a photo restore job on his computer and I was over the moon with the result.
The first I knew the client had bought another car was when he gave me the accounts a month ago, and he'd bought it in June last year. But a valid point and although I normally work on mileage where suitable this one gave me fuel receipts from day 1, and it's a once a year job, so everything is in hindsight.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
The first I knew the client had bought another car was when he gave me the accounts a month ago, and he'd bought it in June last year.
So you also need to account for the addition of a new car in 2017/2018 as well as the disposal of the old one (or am I reading this wrong)
If you are going to be claiming CA on this car as well I would be making sure it went into the single asset pool instead of the main rate/special rate pools so you don't have this same problem in the future.
-- Edited by Artois on Friday 5th of October 2018 07:22:25 AM
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Doug
These are only my opinions of how I see things and therefore should not be taken as advice
The first I knew the client had bought another car was when he gave me the accounts a month ago, and he'd bought it in June last year.
So you also need to account for the addition of a new car in 2017/2018 as well as the disposal of the old one (or am I reading this wrong)
If you are going to be claiming CA on this car as well I would be making sure it went into the single asset pool instead of the main rate/special rate pools so you don't have this same problem in the future.
-- Edited by Artois on Friday 5th of October 2018 07:22:25 AM
Already done, thanks. He'd forgotten about that trip to the newsagent to collect his paper Seriously I've gone for 1% private mileage.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
