Capital Allowances - Balancing Charge?
Hi all. I have a client who has ceased being self employed in the tax year 2011-2012 and become an employee. I have taken over from a previous accountant but have been unable to get any previous years paperwork or calculations due to the Accountant being seriously ill.
I know there is a Capital Allowances balance b/fwd of £6k which needs dealing with. My client does not know what the capital allowance is or that he was even claiming capital allowances. I think that it is for his vehicle which he still has.
My question is do I write off the whole balance as a balancing charge (£6k) for the client to then have to pay tax on it? I have been advised by HMRC that is what needs to happen but would like other accountants views.
Thank you for any help provided.
- Companies House 550 9
- Dress code 259 12
- French Excise Duty - Help Please! 101 1
- not self employed since March 2011 now received a penalty for late tax return for year 2012-13 281 11
- Where to start to get any of jobs in Finance and Accounting Industry 700 9
- How much did you pay for your website 1,404 25
- What would you do in this situation? 567 13
- Help Required 355 10
- directors control and tax problems 199 5
- Fastest Software 775 13
- FILING COMPANY ACCOUNTS 941 28
- What's in a name ? 320 5
- Straightforward email correspondence or PDF letter attached to blank email? 250 4
- What quality paper do you use for correspondence? 438 15
- Bulk Invoicing 180 6
- Travel and Substinance expenses while abroad 158 3
- Self Employed Self Assessment: Capital Allowance and Car Lease/HP 250 2
- ATED Penalties 277 1
- late second payment on account 181 2
- US royalties 99 2
- CTA study material 704
- Anyone have clients that use Pay4Later to offer customers credit? 427
- Employment related securities question 268
- AIM Stocks and IHT 246
- Tax Relief for overseas employees 201
- Trust for Employee 188
- Expat pension contributions? 186
- Raiders of the Lost Tax File 186
- Recommendations for Ross Martin Tax consultancy 2014 164
- Quickbooks losing VAT return data 160