Client has a car which at first I didn't include in accounts because I thought he had sold it same tax year. Turns out it was a couple of months later so I've included it.
Value is 1400 and its over 160 g/km so 8% special rate pool. Calculates at £112 less 25% personal use so £84.00
Plugged that figure into capital allowance on tax return expecting it to alter the figures by £84.00 and it alters them by £22.38
For my own sanity is that right or have I done something wrong?
Not sure on the reasoning for not initially including it. Anyway especially as there was doubt about dates, that would be a good place to double check - dates when you introduced the vehicle - accounting and basis period dates.
£22.38 is almost a 5th of £112 if that helps. If you have any printouts pre- introduction of car, then cross check if anything else has changed.
Not sure on the reasoning for not initially including it. Anyway especially as there was doubt about dates, that would be a good place to double check - dates when you introduced the vehicle - accounting and basis period dates.
£22.38 is almost a 5th of £112 if that helps. If you have any printouts pre- introduction of car, then cross check if anything else has changed.
Regards, Tim
A full year claimed (Car was introduced April 2013 at start of business - sold May 2014) but irrelevant anyway, all HMRC know is that I put £84 in the capital allowances box.
Nothing else has changed. If I take the £84 back out of capital allowances, it alters the tax payable figure by £24.36 (apologies, I was doing it from memory before)
I thought that the relief was already taken into account when they only allow you 8/18% of the cost. Thanks Michelle.
