Private Hire Taxi Drivers - Disposal of Vehicle

System

Hi can anyone help please!!! I have a new private hire client who has during the period disposed of his old vehicle and has bought a new £3500 cash.

Would it be right to show the disposal on the I&E account and the new vehicle as capital introduced?

your help much appreciated in advance.

System

Re:Private Hire Taxi Drivers - Disposal of Vehicle

Only the profit/loss on disposal gets put through the I&E.

The Revenue might question where the £3500 cash came from, as taxi drivers are one of their pet hates, but yes, it would be capital introduced if it was money from a personal account of theirs.

Hope this helps.

Claudia

System

Re:Private Hire Taxi Drivers - Disposal of Vehicle

thanks for your input...your absolutely right about IR picking on Taxi trade.
I'll put the new vehicle as capital introduced.
So the disposal i will need to ask the client what the value he sold it for, to work out the profit/loss.

Claudia - do you have taxi drivers as your clients, if so, do you get all the papers you need? :?

System

Re:Private Hire Taxi Drivers - Disposal of Vehicle

I've only got one - who is actually really quite well behaved - but he "works" for one large taxi operator, so income is (probably) only ever from them

Claudia

System

Re:Private Hire Taxi Drivers - Disposal of Vehicle

Just wanted to add my 2 pence worth for when you're filling in his tax return - (a) when you're calculating the capital allowances, if the previous taxi was the only item in his 'pool' then you can claim a balancing allowance when it's sold, and, (b) so long as there's no private use of the new taxi, you'll be able to claim a 40% first year allowance on it.

jodie

System

Re:Private Hire Taxi Drivers - Disposal of Vehicle

Note if the taxi was acquired after 5th April 2006 the FYA available will be up to 50% on cost provided the business qualifies as small or medium sized which it almost certainly will.FYA's are still available even if the taxi is used only partly for business purposes, FYA's claimed should be reduced by the proportion of private use. The cost of the taxi does not form part of the pool of expenditure and should be dealt with separately in the capital allowances computation.

System

Re:Private Hire Taxi Drivers - Disposal of Vehicle

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