FYA do you proprtion to private use?

topcat
topcat Registered Posts: 452
in AAT Level 4 (Level 8 in Scotland)
Morning All,

In this question should the car be proportioned to private /business use? I am sure i had a question which did and this one doesn't (i can not find the question which did though)

yLqsY.jpg

Thank you

Comments

  • CeeJaySix
    CeeJaySix Registered Posts: 645
    Do not proportion business use for companies, only for unincorporated businesses. The capital allowances that are saved by HMRC in not allowing private use for unincorporated businesses is replaced by charging Class 1As on benefits in kind for companies. A company is a separate entity and cannot itself drive a car!
  • topcat
    topcat Registered Posts: 452
    CeeJaySix wrote: »
    Do not proportion business use for companies, only for unincorporated businesses. The capital allowances that are saved by HMRC in not allowing private use for unincorporated businesses is replaced by charging Class 1As on benefits in kind for companies. A company is a separate entity and cannot itself drive a car!

    Thank you very much indeed ! :thumbup:
  • CeeJaySix
    CeeJaySix Registered Posts: 645
    PS. That only applies to the owners of unincorporated businesses (the sole trader or the partners) - if the private use is by an employee of an unincorporated business, again do not apportion private use for capital allowance purposes, Class 1As will instead be charged on the employee's benefit. Not sure that will come up in AAT though.
  • Lucy_M
    Lucy_M Registered Posts: 136 Beyond epic contributor 🧙‍♂️
    It did in mine...
  • Pearce161
    Pearce161 Registered Posts: 57 Epic contributor 🐘
    Think I stuffed this up on my exam last night on a sole trader.
    I thought with FYA it was not apportioned but did apportion the sales managers private use of a car for the WDA.:mad2:

Categories

Privacy Policy