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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13865
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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Another question. I have civil engineering consultancy.

Resolved Question:

Another question.
I have civil engineering consultancy. I use my car work but have never claimed any depreciation. I bought a car for £12,750 in 7 March 2010 and sold it for £5,700 on 7 April 2013. At same time I bought car for £14,695.
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.

Thanks new question and asking .
Is the car used exclusively , if not what % of mileage is business use
Was the car valued at £14685 bought on 07/04/2013
Do you claim actual method of motoring expenses or pence per mile method
Thanks
Sam
Customer: replied 2 years ago.

I assumed you would charge me again.

Car is used mostly . I claim 75% of actual costs against tax (and also add in item in VAT return). £14,685 car was bought on 7/4/2013.

Regards

David

Expert:  Sam replied 2 years ago.
David
As actual costs are claimed then capital allowances are permissible against the car.
Just one final piece of information, the CO2 emissions of each of the cars please, so I cane establish whether 10% or 20% of depreciation is due.
I can then work out the figures tax year .
As you have listed this question with a new amount offered, that will be the fee you pay, assuming you are happy with the level of service I provide on this new question.
I hope that is acceptable
Thanks
Sam
Customer: replied 2 years ago.

I am more than pleased with your service.

CO2 emissions are 109 g/km

Regards

***** *****

Expert:  Sam replied 2 years ago.
David
Ok I am going to work out and send you the calculations (and how they are made) so you know how the figures have come about, this will take me 10 -15 mins so this message is just so you know I am on it !
Thanks
Sam
Customer: replied 2 years ago.

Thank you.

I look forward to your calculations

Regards

***** *****

Expert:  Sam replied 2 years ago.
David
Ok the situation is as follows
109g per k/m means that its deemed to be energy efficient so
2009/2010 purchase £12750 - you claim 100% of the value - which just needs to be restricted use - so 75% = £9562.50 to claim
Then NIL for
2010/2011
2011/2012
2012/2013
2013/2014,
As the first vehicle sold for £5700 - then you have a balancing charge to add back into the profits to represent 75% business use - so £4275
AND you can claim capital allowances new purchase, however the CO" emission position has shifted - so that a car with a CO2 emission between 95 and 130g k/m is 18% Writing down allowances
SO Value of car at purchase £14685 x 18% = £2643.30 restricted to 75% business use = £1982.48
Value to carry forward 2014/2015 £ 12042
So to recap the claim
2009/2010 Claim Capital Allowances £9563
2010/2010 NIL
2011/2012 NIL
2012/2013 NIL
2013/2014 Balancing charge £4275 and Capital allowances £1983
Thanks
Sam
Customer: replied 2 years ago.

Can I go back to include this on this year's self assessment form?

Regards

***** *****

Expert:  Sam replied 2 years ago.
David
Thanks question
You should allow 2009/2010 tax return with the original amount of £9563 and then /2014 charge back in the balancing charge of £4275 and claim the capital allowance of £1983
But they have to be claimed in their appropriate year,
If you feel you have insufficient income to utilise the 2009/2010 position, (which I have to say as its more than 3 years old, you will have to ask HMRC to consider permitting this claim) then it would normally be claimed to create a loss and then brought forward to offset against the income position .2011
My advise - forgo the claim from 2009/2010 which means that you do NOT have to ask balancing charge to be added back in /2014 but you do then in essence lose the claim difference of £5378 you would have been owed.
Thanks
Sam
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