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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4996
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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UK tax / accounting] We've just realised we failed to add

Resolved Question:

[UK tax / accounting]
We've just realised we failed to add a car into our business expenses. It was actually purchased late April 2013 so would fall into tax year ended April 2013.
We are still working on final figures for y/e 2014, so we can add things to that year without any problem. Prefer not to amend earlier years if we can help it. Of course we want to be sure we are claiming the full expenses allowable.
What is the best way to address this, please?
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your question... Please clarify for me- is your accounting year end 5 Apr of 30 Apr?- are you referring to capital allowance on the car or running expenses?- is there private use?- what is Co2 emissions figure for the car? Many thanks
Customer: replied 1 year ago.
- accounting y/e is 5 april
- both
- yes, but we can apportion
- don't know but we can look up. (they'll be medium - it's a diesel car). interested in knowing the principle at this stage.
Many thanks
Debra
Customer: replied 1 year ago.
N.B.
Manufacturer Model Description Gearbox Engine size (cc)
HONDA Accord 2.2 i-CTDi Executive (2004YM~) 4 Door 5MT 2204
Fuel type CO2 Tax band
Diesel 143 F
Customer: replied 1 year ago.
My apologies - I made an error before. The car was purchased late April 2012!! Hence it should be in year ended 5 april 2013.
Expert:  taxadvisor.uk replied 1 year ago.
Debra, thank you for your prompt reply. My advice would be- to write to HMRC if you wish to amend accounts for year ended 5 Apr 2013- to submit amended accounts/tax return for 2014 (year ended 5 Apr 2014) and claim bothboth running expenses andcapital allowance after adjusting for private use.. deadline for that is 31 Jan 2016You are then on correct footing. The alternative is you don't amend the accounts and forgo the claim for motor expenses etc pertaining to that car for last two years. If you decide not to amend accounts for previous years then -- you would claim WDA at 18% and this return would cover first WDA as your CO2 emissions exceed 130g/km.More information on this can be found on page 11 of hs252 herehttps://www.gov.uk/government/uploads/system/uploads/attachment_data/file/323611/hs252.pdf I hope this is helpful and answers your question.If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.
Customer: replied 1 year ago.
we have not yet submitted accounts for y/e april 2014. Therefore, I think we have two options:
(1) submit amendment for y/e april 2013; continue as normal for y/e 2014 and 2015 OR
(2) forgo y/e 2013 and merely claim usual allowances for y/e 2014 and 2015
Is my understanding correct?
Please can you give correct way forward for both options (1) and (2) please?
Many thanks indeed!
Expert:  taxadvisor.uk replied 1 year ago.
Debra, thank you for your reply.Your understanding is correct.I hope this is helpful. If there are no more issues, I will appreciate if you would kindly rate my service/accept the service I have provided before you leave the site, to ensure I get credited for it by Just Answer.
taxadvisor.uk and other Tax Specialists are ready to help you
Expert:  taxadvisor.uk replied 1 year ago.
I thank you for accepting my answer.
Your reward of a generous bonus is greatly appreciated.
Best wishes.
Customer: replied 1 year ago.
Thank you very much. I have accepted the answer but don't see any way to rate the service. If I am offered the option, I surely shall rate but at present don't' see any way to to do.
Thank you very much for your assistance.
Best wishes
Debra
Expert:  taxadvisor.uk replied 1 year ago.
Debra, thank you for your good words.
There is an option ..smiley faces
Best wishes