I understand the 'loss / physical amount of cash' gets thrown into the accounts to show the profit.
I understand that this has to be 'added back' in the same way as depreciation to come up with a taxable income figure.
We only had the Jeep for a year and a half and never claimed Capital Allowances as we never needed to, profits being below the personal allowance threshold.
Are you saying that I should add up these unused Capital allowances and then add in the extra figure that 'soaks up' the difference between the value of the CAs and the physical cash loss on the Jeep and this would be the Balancing Allowance?
Thanks for taking the time to reply, I haven't had to use this process for over 20 years and I am very rusty..
One last faff...I'm getting mixed messages - a capital loss on disposal is allowable against capital gains only and not against taxable 'trading' income - right?
Thanks for the reply but that's my question,. I know how it's treated but on the software there is no option to enter a figure for 'loss on disposal' and no where to add it back - the only options are to add it into other allowable expenditure or claim it as an additional capital allowance.
I'm a woman. But thanks! As there is a separate page for calculating balancing charges, I assumed there would be a matching page for allowances. NO WDA's were claimed and there is no area to mark it as a loss on disposal. Maybe I'm overly concerned about transparency of entries reducing a tax liability..my bad.
Many thanks Nick, my actor moved around every 2-3 weeks so am confident of the accom rental costs and I see that TH had his subsistence disallowed becuase he could not 'prove' receipts / expenditure. My client has kept all his food receipts so will consider putting them through. Thanks very much for directing me towards this case.
My answers
Surprise? Disappointment? Or just balls finally dropping, Tim?
My apologies , I'm not being clear here at all.
I understand the 'loss / physical amount of cash' gets thrown into the accounts to show the profit.
I understand that this has to be 'added back' in the same way as depreciation to come up with a taxable income figure.
We only had the Jeep for a year and a half and never claimed Capital Allowances as we never needed to, profits being below the personal allowance threshold.
Are you saying that I should add up these unused Capital allowances and then add in the extra figure that 'soaks up' the difference between the value of the CAs and the physical cash loss on the Jeep and this would be the Balancing Allowance?
Thanks for taking the time to reply, I haven't had to use this process for over 20 years and I am very rusty..
Didn't need to - his profit was below the personal allowance threshold so we were just hanging onto them to use against future profits..
This is becoming more confusing! Are losses on disposal claimable against taxable income for self employment or not?
One last faff...I'm getting mixed messages - a capital loss on disposal is allowable against capital gains only and not against taxable 'trading' income - right?
Loss on disposal - I am using the HMRC software and just can't see a box anywhere called loss on disposal :-(
Thanks for the reply but that's my question,. I know how it's treated but on the software there is no option to enter a figure for 'loss on disposal' and no where to add it back - the only options are to add it into other allowable expenditure or claim it as an additional capital allowance.
Loss on disposal with no CA / WDA entered previously.
I'm a woman. But thanks! As there is a separate page for calculating balancing charges, I assumed there would be a matching page for allowances. NO WDA's were claimed and there is no area to mark it as a loss on disposal. Maybe I'm overly concerned about transparency of entries reducing a tax liability..my bad.
Interesting!
Many thanks Nick, my actor moved around every 2-3 weeks so am confident of the accom rental costs and I see that TH had his subsistence disallowed becuase he could not 'prove' receipts / expenditure. My client has kept all his food receipts so will consider putting them through. Thanks very much for directing me towards this case.