exp car allowance

valentino46valentino46 Well-KnownPosts: 124Registered
hi guys,

hope someone could help with the following:

i have an expensive car pool with a vehicle which value has been brought forward of £18000, i think im right limiting the WDA to £3000 instead of £3600 and as the business use is 60% i then calculate 60% of the £3000?

this might sound obvious or ami doing it wrong?

im having trouble when it comes to calculating % for business use

thanks

rob

Comments

  • TerdooTerdoo Well-Known Posts: 144Registered
    Re BTC

    yes you are doing the right thing
    3000 * 60% Capital Allowance for expensive car 1800
  • Gem7321Gem7321 Experienced Mentor DevonPosts: 1,438MAAT, AAT Licensed Accountant
    But remember you still write down the car by the full amount
  • valentino46valentino46 Well-Known Posts: 124Registered
    thanks guys,

    i was initially taking 60% from the wdv b/f not the 20% wda

    thanks

    rob
  • LilyflowerLilyflower Feels At Home Posts: 54Registered
    Sorry to through a possible spanner in the works, but this is for a sole trader and not a company? - Company cars can quote private use till the cows come in but it doesn't matter.

    Lily xxxxxxxxxxxxxxxx
  • valentino46valentino46 Well-Known Posts: 124Registered
    hi lilley,

    it was for business use, i was initially calculating the 80% business use off the wdv b/f of the exp car pool rather than first writing down the 20% and then calculating 60% of the wda, if that makes any sense.

    im yet to tackle personal tax so i think your comments maybe be in relation to that unit, is personal tax based along the same lines as business??

    cheers

    rob
  • A-VicA-Vic Expertise Guaranteed Posts: 6,970Registered
    Yes if for a business there is no personal use this would go on his own P11d and he would be taxed on the benifit as well as there is no expensive car in business this is just special rated and allowence at 10% unless CO2 less than 160
  • valentino46valentino46 Well-Known Posts: 124Registered
    thanks Avic,

    there seems to be links between business tax and pers tax can i expect this with other areas too?

    thanks

    rob
  • A-VicA-Vic Expertise Guaranteed Posts: 6,970Registered
    Your welcome rob

    Only just learning this myself but for some reason this stuck.

    The one thing am struggling with is NI
  • Gem7321Gem7321 Experienced Mentor DevonPosts: 1,438MAAT, AAT Licensed Accountant
    Hang on I think you're getting confused between business tax and corporation tax.

    Businesses, ie. unincorporated businesses, can have PU. Ltd. co.'s can't.
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