Client had a car as only asset, sole trade so we kept out pool and restricted allowwance by 1/3 private.
Car sold December 2013 but having trouble getting CA's right.
WDV b/f say £30000
Proceeds £20000
I think therefore we are left with £10000 in pool to get WDA's on evermore
What rate do we get WDA?
How the hell do I get IRIS to show it right, it wants to give me a BA of £10k which I am sure is not right but there is no way to over write this.
All I can think is a manual adjustment to reverse the BA and bring in the BA figure as additions for WDA's!
Replies (8)
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Single Asset Pool
So - are you saying the car was in a Single Asset Pool ?
Just checking, like .......
If you've "emptied" your pool, you get a balancing allowance.
CA27005
is the manual reference
Balancing allowance reduced by the private proportion is correct
Iris seems correct
Private use, so single asset pool, and balancing allowance on disposal
Yes ..
... that is what IRIS said to do if you have private use adjustment, but they don't tell you what to do if that asset is sold and you have the stupid situation of no assets but a big pool figure to carry forward - which is my understanding of what should happen
Thanks guys ...
... really grateful, been a long weekend and brains going fuzzy! Client will be happy as this will trigger a big refund and the BA gives a nice loss to set against other income taxed at source.
agreed
The other point is that if there is no private use, the WDV does get carried forward st miserly WDAs.
So an incentive for the client to make the case that "yes, there is some private use", rather than 100% business. Tricky to argue that there is some private use if a client is VAT regd but not applying the fuel scale charge.
Interesting.