Capital Allowances - 2 cars owned by taxi driver

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Vanessa_Essential
Vanessa_Essential Registered Posts: 12 New contributor 🐸
in General discussion - Professional level
My first tax return using capital allowances and I need help please.
16/17 - his wife completed basic tax return and used no capital allowance. He bought a car to use as a taxi in Jun 16 @ £4995, 119g.
17/18 - he sold it for only £300 (very high mileage) in Jan 18, and bought a used car 146g @ £12305.
Both cars had 10% personal use.
I have some calculations here but I am not confident in using them. He needs 17/18 and 18/18 tax returns doing asap.
I cannot use the 45p per mile calculations as no records of mileage for either car on either year. Could someone please compute their calculations and then I can see if mine are correct or not?
Thanks!

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  • douglasstroud
    douglasstroud Registered Posts: 295 Dedicated contributor 🦉
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    17/18 is nearly a year late so must have massive penalties and 18/19 needs filing in 13 days, why the delay ?
    Why don’t you post your thinking on this and your figures so people can then correct you if needed.
  • Vanessa_Essential
    Vanessa_Essential Registered Posts: 12 New contributor 🐸
    edited January 2020
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    Hi, yes he has penalties! Has buried his head in the sand and has come to me.
    My thoughts are:
    16/17 4995 x 18% (899) less 10% personal usage = 809 (add to the 17/18 claim as not used 16/17)
    17/18 4995 - 899 = 4096 less 300 disposal = 3796 less 10% pu = 3416 claim
    17/18 12305 x 8% (1032) less 10% pu = 929 claim

    Total claim 809 + 3416 + 929 = 5154, but I won't need to put all of this through on the 17/18 return due to personal allowances
  • douglasstroud
    douglasstroud Registered Posts: 295 Dedicated contributor 🦉
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    It seems you are over thinking this
    As no claim was made in 16/17 then the 4995 is the WDV carried over you can not carry forward the claim
    In 17/18 just account for the disposal as normal with the allowances for private use (4995 - 300 - 10%)
    The new car I make 12305 x 8% to be 984 minus private use

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