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.
- Sage Instant Accounts Complete De-install problem 193 6
- Auto Enrolment - Help each other by sharing known problems 725 14
- Self employed and HMRC Worldwide Subsistence Rates 806 1
- HP agreement in Directors name but payments under company 470 10
- Real time 193 2
- Withdrawal of a quote 401 7
- Opt To Tax Refund 256 3
- Paid staff their normal salary instead of SMP 233 2
- Pay rise - how to enter in Moneysoft 220 5
- New (non resident) client not filed in 20 years 603 15
- When to top-up pensions? 185 2
- Support / ticketing software 334 11
- Are Tax Agents designed out of online systems? 333 3
- Imported goods and VAT 147 1
- Annual Return for company for whom director/shareholder has died 439 15
- Divorcing husband, both 50% owners of a Ltd business 594 11
- Stamp Duty 188 3
- Entrepreneur - want to submit accounts by myself 1,867 22
- Company Number 10000000 999 13
- Online accounting provider for multicompany with turnover £10m 371 5
- Interest paid - do new rules affect Tax Credits? 471
- Market Invoice (P2P invoice discounting) tax treatment 290
- DTA tie-breaker issue 281
- CGT for NOn UK residents 244
- Tax Implicatins on a Directors Loan 220
- Apprenticeship Levy 218
- What are the tax implications of overseas sales through a UK based company? 211
- Just checking re PSA 197
- Capital Gains personal representatives 191
- Mandating Rental income or dividend income to a company 177