tax return

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT member discussion
I know i should know this, however a taxi driver asked me this question and I was very embarrassed as I was not sure.

'If he part exchange his taxi and buys a new one. Does he declare the full price of new taxi on his return or the actual price he pays.'

Thanks in advance anyone who can put me straight.

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:tax return

    Assuming you are claiming capital allowances etc then it goes into the balance sheet at the full price. It won't be in the profit and loss account as it is an asset and needs to be capitalised.

    Annette
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:tax return

    Also when doing the above, remember to dispose of the old vehicle.

    Regards

    Dean

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