Loss on sale of vehicle for sole trader
jow774
Registered Posts: 461 Dedicated contributor 🦉
Client has sold a vehicle for scrap for £169 which cost £600 in the previous year. The vehicle is a van used solely for business. Do I claim loss on sale against income? Im a bit unsure as looking at his previous accounts (drawn up by other accountant) it looks like he has brought and sold a van each year?
Just to add he is insisting that I claim it.
Just to add he is insisting that I claim it.
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Comments
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I assume that in the year it was bought the previous accountant claimed 100% AIA in which case for tax it was written down to zero and the £169 would be treated as a balancing charge for CA's.
In the P&L account the loss on sale would be shown as an expense and added back for tax.
K H0 -
I assume that in the year it was bought the previous accountant claimed 100% AIA in which case for tax it was written down to zero and the £169 would be treated as a balancing charge for CA's.
In the P&L account the loss on sale would be shown as an expense and added back for tax.
K H
Yep, this.
If he only paid £600 then it's quite possible his vans only last a year each!0
