Business car written off

System
System Posts: 100,537 🤖 Admin 🤖
edited June 9 in AAT member discussion
My daughter has recently written off a car used in our business.<BR>The insurers have valued it at £3,400 but deducted £500 from the payout as an excess<BR>We may or may not recover this excess from my (teenage) daughter who prefers to party.<BR>The WDV of the car in our 2003 accounts is £4,347<BR>Which WDA's, loss figures etc do I use in this years self assessment?<BR>Does the fact that the insurers pay alter the calculations?<BR>thanks<BR>Gerard Somers

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  • System
    System Posts: 100,537 🤖 Admin 🤖
    Business car written off

    Many thanks <BR>so I claim the loss on sale (and there is a loss) figure in box 3.62 and disallow it as usual in box 3.44 along with other depreciation - but use box 3.23 to claim the (netted off for private use?) balancing charge instead. This gives me a greater 'claim' than I would normally make if the vehicle had not be 'totalled'.<BR>Replacing the vehicle with another gives me an additional 25% full year WDA claim (adjusted for private use) on that vehicle also. Seems like writing off cars is beneficial for tax if not for parental sanity?<BR>Gerard

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